Aave may face losses of up to $230 million due to a vulnerability in the Kelp DAO cross-chain bridge.

CoinFeed reported on April 21 that, according to CoinDesk, an incident report released by Aave revealed that a vulnerability in the Kelp DAO cross-chain bridge resulted in approximately $190 million in loans being used without collateral, exposing Aave to potential bad debt risks. The report from Aave Labs and LlamaRisk indicates that attackers released 116,500 rsETH from the Ethereum sidebridge by forging cross-chain messages, then deposited 89,600 rsETH into Aave as collateral, borrowing approximately $190 million in ETH and related assets. Aave froze the rsETH market within hours and set the loan-to-value ratio to zero.