A new development has raised security concerns in the cryptocurrency market. According to information shared by on-chain data provider Onchain, KelpDAO’s liquid staking token may be subject to a large-scale attack.
Assets worth more than $100 million were reportedly affected by the breach. After this development, negative effects were also observed in version V3 of the decentralized finance (DeFi) protocol Aave. $AAVE V3 is reportedly facing a bad debt issue due to the possible hack in KelpDAO.
The price of Aave saw a sharp drop after the incident:
*This is not investment advice.