Summary
- Mantle said the KelpDAO hack was a localized issue caused by a cross-chain vulnerability and did not affect the Mantle network, its official bridge, or core assets.
- Mantle said recent liquidity pressure was a spillover effect from a third-party cross-chain vulnerability, and that it will keep some protective measures in place while reviewing whether to lift them after market conditions stabilize.
- With about $204 million in redemptions processed and liquidity conditions normalizing, Mantle said it is working with major DeFi protocols including Aave on a joint response and reviewing possible financial support if needed.
Forecast Trend Report by Period
Concerns over broader contagion rose after the KelpDAO hack, but Mantle said the incident did not affect its network. It described the breach as a localized issue stemming from a cross-chain vulnerability.
Mantle wrote on X on April 21 that the incident occurred in KelpDAO’s rsETH configuration and did not affect the Mantle network, its official bridge or core assets. LayerZero also confirmed that the vulnerability was limited to a specific protocol and did not spread to other applications, according to Mantle.
Mantle said recent liquidity pressure was also a spillover effect from a third-party cross-chain vulnerability. Some protective measures introduced earlier will remain in place, and the company will review whether to lift them once market conditions stabilize.
On-chain data show funds have been returning gradually since the incident. Mantle said about $204 million of redemptions were processed in major dollar-based assets over roughly 48 hours from April 18, adding that liquidity conditions are gradually normalizing.
Mantle also said it is discussing a joint response with major DeFi protocols including Aave. It added that it is reviewing possible financial support if needed.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
