Kelp DAO says rsETH restored 5 weeks after $293M protocol hack
Kelp DAO says that sETH mints, redemptions and rewards operations have been running smoothly since it opened withdrawals for the token earlier this month.
Kelp DAO has announced the full restoration of its rsETH token operations five weeks after suffering a $293 million protocol hack. The decentralized autonomous organization reported that rsETH mints, redemptions, and rewards operations have been running smoothly since reopening withdrawals earlier this month. The protocol has successfully restored normal functionality across all core services.
The significant hack occurred several weeks ago, forcing Kelp DAO to temporarily suspend operations while addressing security vulnerabilities and working to recover from the attack. During the downtime, users were unable to mint new rsETH tokens or process redemptions, creating uncertainty around the protocol's future viability. The $293 million loss represented one of the larger DeFi exploits in recent months, highlighting ongoing security challenges facing decentralized finance platforms.
The successful restoration of Kelp DAO's operations provides a positive signal for the broader liquid staking derivative market, demonstrating that protocols can recover from major security incidents with proper remediation efforts. The incident serves as a reminder of the importance of robust security measures and emergency response protocols in DeFi infrastructure. Market participants will likely monitor the protocol's performance closely to assess user confidence and adoption following the restoration.
Industry observers will be watching whether Kelp DAO can rebuild user trust and trading volumes to pre-hack levels, while also examining what security improvements were implemented during the recovery period.
Source: Cointelegraph
