An exploit targeted a LayerZero bridge connected to KelpDAO, draining approximately 116,500 rsETH worth $292 million to $294 million on April 18. Aave absorbed roughly $195 million in bad debt from unbacked collateral, while SparkLend avoided material losses entirely thanks to pre-established rate limits and reduced rsETH exposure. The protocol maintained a loan-to-value ratio of 72% on rsETH positions and had an oracle killswitch in place. In the weeks following the exploit, SparkLend accumulated between $1 billion and $1.7 billion in new deposits. The SPK token reflected short-term gains ranging from 50% to 78% after the hack.
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