Aave is facing potential losses of up to $230 million following a cross-chain exploit involving rsETH, a liquid restaking token issued by KelpDAO. The incident, detailed in a report from Aave Labs and LlamaRisk, stemmed from a flaw in how cross-chain transfers were verified using LayerZero infrastructure. The attacker forged a transfer message that appeared valid, allowing the system to approve the issuance of tokens on the destination chain without locking the corresponding assets on the source chain. As a result, 116,500 rsETH were effectively created without backing on the Ethereum-side bridge. Rather than selling ... (full story)