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

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Text version: https://stenobird.com/podcast/unchained-728975/bits-bips-how-the-kelp-rseth-hack-left-aave-with-193m-in-bad-debt.md
Podcast: [Unchained](https://stenobird.com/podcast/unchained-728975)
Published: 2026-04-28T15:21:00+00:00
Episode link: https://pdrl.fm/98e0b1/traffic.megaphone.fm/LSHML8437838794.mp3
Audio file: https://pdrl.fm/98e0b1/traffic.megaphone.fm/LSHML8437838794.mp3
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Duration seconds: 577

## Resource

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: https://youtube.com/live/hJ9X_btsvD0 We go live every Thursday at 12:00 PM ET — subscribe to catch it live. Learn more about your ad choices. Visit megaphone.fm/adchoices

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## Transcript

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