Armada Daily Repo Summary Archive
Crypto Repo & Lending

KelpDAO $293M Bridge Hack Exposes Systemic Cross-Chain Security Failures in DeFi

DL News · Apr 20, 2026 6:56 AM EDT

KelpDAO suffered a $293 million exploit on April 18 when attackers compromised the RPC infrastructure underpinning its LayerZero cross-chain bridge, poisoning data feeds and draining rsETH holdings. The attack vector was a single-verifier configuration on the LayerZero OApp, meaning one point of failure unlocked a nine-figure loss. Attribution has been made to North Korea's Lazarus Group, elevating the incident from opportunistic exploit to state-sponsored infrastructure attack.

For Armada's crypto repo desk, this event directly challenges the collateral viability of liquid restaking tokens like rsETH that depend on cross-chain bridge integrity for price discovery and redemption. Fireblocks custody controls do not mitigate smart contract or bridge-layer risk at origination. Armada should flag any LRT collateral in the current or pipeline book to legal and risk, and consider imposing bridge-dependency haircuts pending protocol-level remediation.

Suggested action Review collateral policy to exclude or haircut bridge-dependent LST/LRT tokens until independent audits confirm multi-verifier setups.
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