Who’s to Blame for How KelpDAO’s DVN Was Set Up? KelpDAO or LayerZero?

Description

The largest DeFi hack of 2026 wasn’t what most people assumed. No contract exploit. No key compromise. Attackers gained access to a LayerZero RPC node, spoofed a transaction on the origin chain, and tricked the rest of the system into minting 116,000 rsETH that never existed. Then they took that rsETH straight to Aave, borrowed real ETH at 90% LTV, and bridged it out. Kain Warwick or Infinex and Synthetix), Taylor Monahan, security expert, , Luca Netz of Pudgy Penguins, and guest Odysseas Lamtzidis walk through the attack vector step by step, the DVN architecture that made it possible, the Aave contagion, and what it means that the system ‘acted as intended’ while acting on a lie. Luca also gives a candid defense of LayerZero founder Brian Pellegrino. This clip is from a longer conversation on the Kelp DAO hack, the Arbitrum intervention, and the future of DeFi governance. Full episode here: https://youtube.com/live/mr7I69N_UTE We go live every Wednesday at 4:00 PM ET — subscribe to catch it live. Sponsored by MultiChain Advisors: MultiChain Advisors is an emerging technology growth firm that has helped create $50B+ in enterprise value for 80+ clients over the past 4 years. They're the partner to help navigate markets. Build real traction today at multichainadv.com Chapters 🔴 00:00 The Kelp DAO hack: TLDR and scale 🔍 02:04 Taylor: why the RPC spoof is scarier than a key compromise 💻 03:50 Kain on what RPCs do and why controlling one is dangerous 💥 05:30 How the attacker spoofed a transaction that never existed on-chain 💸 06:58 How rsETH’s Aave listing let the attacker borrow real ETH at 90% LTV 🤔 10:53 Luca: why Abstract had limited exposure and his defense of LayerZero 🏛️ 16:21 Odysseas on systemic bridge risk and why DVN defaults matter _______________________________________________________ #bitcoin #ethereum #crypto #cryptocurrencies ++++++++++++++++++++++++++++++++++++++++++++++++ Subscribe to our channel! Website → https://unchainedcrypto.com Unchained Daily Newsletter (FREE!)→ https://unchainedcrypto.beehiiv.com/subscribe/ Unchained X → https://x.com/unchained_pod Apple → https://podcasts.apple.com/us/podcast/id1123922160?ls=1 Spotify → https://open.spotify.com/show/1cJrrfGY1SKBIRn5noKSAf?si=6SI4qIcRTEO7EhOe0V9n4w RSS Feed → https://feeds.megaphone.fm/LSHML4761942757 Unchained: Your no-hype resource for all things crypto!