Kelp
Last changed 2026-10-10 · Score recalculated — Rescored under Scoring v2, the published formula (avoid.net/scoring): 18 → 59. Problems weighed by who is responsible: incidents the subject suffered −3.2, problems around the subject, caused by others −3.2, concerns that are not fraud −3.2; legitimacy credit long-running +4. Version history →
Why this score
| Every page starts at | 65 |
| Concerns that are not fraud | -3.2 |
| Incidents it suffered (e.g. hacks) | -3.2 |
| Problems around it, caused by others | -3.2 |
| Long-running | +4 |
| Sum | 59 |
Score: 59/100 (kept between 0 and 100)
How scoring works →Summary
Kelp (also known as Kelp DAO) is a liquid restaking protocol built on Ethereum and EigenLayer that issues rsETH, a liquid restaked token. In April 2026 the protocol suffered the largest DeFi exploit of 2026 to date when attackers, attributed to North Korea's Lazarus Group, drained approximately $292 million in rsETH through a compromised LayerZero cross-chain bridge configuration. The protocol and an industry coalition dubbed DeFi United are actively working to restore collateral and resume operations as of May 2026.
Connected Entities
11 entities · 59 linked investigations- Mantle→mentioned with→Ethereum(80%)
- Ethena→mentioned with→Ethereum(75%)
- TraderTraitor / UNC4899→mentioned with→Ethereum(80%)
- North Korea Lazarus Group — H1 2026 Systematic Crypto Theft Campaign→mentioned with→TraderTraitor / UNC4899(70%)
- Eigenlayer→mentioned with→Mantle(60%)
- Eigenlayer→mentioned with→Ethereum(70%)
- LayerZero Labs→mentioned with→Ethereum(60%)
- LayerZero Labs→mentioned with→Chainlink(70%)
- LayerZero Labs→mentioned with→Mantle(60%)
- Chainlink→mentioned with→Ethereum(65%)
- + 26 more
Timeline(11 events)
November 2023
Kelp DAO launches rsETH liquid restaking protocol on Ethereum and EigenLayer; Code4rena public audit completed.
February 2024
Kelp begins private token round for KELP governance token at $90 million fully diluted valuation.
March 2024
Kelp closes $9 million private token round led by SCB Limited and Laser Digital (Nomura) with participation from Bankless Ventures, Hypersphere, Draper Dragon, and others.
30 April 2025
Kelp discloses bug in fee minter contract causing excess rsETH minting; deposits and withdrawals paused. No user funds lost. Aave precautionarily freezes rsETH markets.
18 April 2026
Kelp DAO's LayerZero-powered cross-chain bridge exploited for approximately $292 million (116,500 rsETH). Attack attributed to North Korea's Lazarus Group (TraderTraitor). Kelp pauses contracts, blocking an alleged follow-up $95 million theft attempt.
19 April 2026
Exploit confirmed as largest DeFi hack of 2026. Aave, SparkLend, and Fluid freeze rsETH markets. Over $13 billion in DeFi TVL exits within 48 hours.
20 April 2026
Kelp DAO publicly alleges LayerZero's default configuration settings caused the exploit. Arbitrum Security Council freezes approximately $71 million in attacker funds on Arbitrum.
27 April 2026
DeFi United coalition — including Aave, Lido, EtherFi, Ethena, Mantle, and LayerZero — announces $300 million+ rescue plan to restore rsETH backing and compensate affected users.
6 May 2026
Kelp DAO publishes detailed memo alleging LayerZero personnel directly approved the vulnerable bridge configuration. Kelp announces migration from LayerZero OFT to Chainlink CCIP.
9 May 2026
LayerZero publicly acknowledges it 'made a mistake' in approving the vulnerable verification configuration used by Kelp's bridge.
13 May 2026
Kelp DAO and Aave announce plans to resume rsETH operations as recovery progresses; DeFi United coalition begins phased rsETH collateral restoration.
Decision Log
- slot 455369149 · hash 4uzRn9pYbKmVnoUr7mBTUi7i5wA9whpLv84cKiTWzFdL
- slot 420837896 · hash 3WnWFZU83a2uppSSU7iNShkqt3qpnZJcNXkCPHGqkERa
This investigation is cryptographically anchored to the Solana blockchain (2 decisions). 17 of 21 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:17 AM
last updated: 10/10/2026, 6:49:06 PM
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