"The April 18 exploit targeted rsETH's bridge on the Unichain-to-Ethereum route, leading to the release of 116,500 rsETH due to a forged inbound packet. This incident has been described as the worst decentralized finance liquidity crunch since 2024."
"Defi United's recovery plan operates on two parallel tracks: restoring rsETH's backing ratio to 1.07 ETH and clearing the affected Aave positions to recover excess collateral."
"The exploit revealed a structural vulnerability, as 98% of rsETH collateral on Aave was concentrated in a single looping trade, which significantly amplified the damage across the platform."
The recovery of rsETH involves two main efforts: restoring its nominal backing ratio of 1.07 ETH and clearing eight Aave positions affected by an exploit. The exploit, which targeted rsETH's bridge, resulted in the release of 116,500 rsETH due to a forged packet. Most collateral was concentrated in a single looping trade, amplifying the damage. Defi United's coalition, now including Compound, represents a coordinated response to the exploit. The restoration process requires governance approvals and involves converting committed ETH into rsETH in tranches.
Read at news.bitcoin.com
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