Protocols halt LayerZero OFT bridge functions after KelpDAO rsETH exploit

Huoxing Finance reported that on April 19, KelpDAO's rsETH was attacked through the LayerZero OFT cross-chain bridge, with losses estimated at about 116,500 rsETH—roughly $292 million. In response, a number of protocols moved to reduce potential spillover risk by suspending related functions or markets. Ethena, Lombard, Euler Labs, TRON DAO, ApeCoin/ApeChain, ether.fi, mETH Protocol, Solv Protocol, MOCA Foundation and River said they have paused their LayerZero OFT cross-chain bridges. The teams stated they have no direct exposure to rsETH and that user funds remain safe, describing the pause as a precaution and expecting services to resume soon. Separately, Aave V3/V4, SparkLend, Lido and Fluid have frozen rsETH-related markets or treasury activity while keeping bridge operations running.