A $292 million exploit linked to Kelp DAO has triggered a wave of security responses across major crypto platforms, including BitGo and Polygon.
The attack exploited a LayerZero bridge vulnerability, draining 116,500 rsETH and prompting firms to isolate potential contagion risks across interconnected protocols.
BitGo suspended LayerZero DVNs for Wrapped Bitcoin as a precaution, while Polygon confirmed its ecosystem remained unaffected and continued normal operations.
Cyvers revealed the protocol narrowly avoided an additional $100 million loss, with a rapid-response blacklist stopping a second exploit attempt within minutes.
Industry leaders are now calling for structural safeguards, including transaction rate limits and supply caps to reduce potential damage from future exploits.
“We built a solution… to throttle cross chain transfers at $10m per hour,”
Said Ethena contributor, Guy Young, highlighting how such limits could have mitigated losses.
The incident has intensified debate around DeFi security design, with experts warning that adopting rate-limiting measures may be critical to preventing larger exploits ahead.
At the time of reporting, Wrapped Bitcoin price was $74,350.15.