Bits + Bips: How the Kelp rsETH Hack Left Aave With $193M in Bad Debt

Luke Leasure and Shaunda Devens of Blockworks Research explain how three compounding failures, Kelp's one-of-one bridge signer, Layer Zero's permissive default settings, and Aave's failure to flag it as a collateral risk, set up the conditions for the exploit. Shaunda Devens then breaks down the monolithic pool design that concentrated risk, showing how 98% of rsETH collateral was backing a single leverage looping strategy. This clip is from a longer conversation on the Kelp rsETH hack and its implications for DeFi. Full episode here: We go live every Thursday at 12:00 PM ET —

You can listen to Bits + Bips: How the Kelp rsETH Hack Left Aave With $193M in Bad Debt online on Radio and Podcast. Open the player on this page to stream the available audio.

Bits + Bips: How the Kelp rsETH Hack Left Aave With $193M in Bad Debt is an episode from Unchained by Laura Shin.

This episode is 9:37 long.

This episode was published on Apr 28, 2026.

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