The LayerZero cross-chain bridge associated with Kelp DAO was hacked on Saturday, resulting in 116,500 rsETH, worth $291 million, flowing to new wallets. The hackers used the illegally obtained rsETH as collateral for lending on Aave, causing the Aave core lending pool to reach 100% utilization and triggering a liquidity crunch. According to 0xngmi monitoring, as of early Sunday, Aave had seen a net withdrawal of $6.2 billion. Kelp DAO has suspended rsETH contracts on the Ethereum mainnet and several L2 networks. As a result, the Aave token price fell 16% to $90.13, and the Ethereum price fell 2% to $2300. Justin Sun has posted on the X platform attempting to negotiate with the hackers.