KelpDAO Cross-Chain Bridge Exploit Causes $292 Million Bad Debt

A vulnerability in KelpDAO's cross-chain bridge has resulted in a bad debt of $292 million. According to PANews, this incident has led to a significant decline in the total value locked (TVL) in decentralized finance (DeFi) by 30% over the past three weeks. Additionally, the interest rates on Aave have surged to 12.4%. The situation has prompted a closer examination of the real risks associated with DeFi stablecoin yields. Using bond mathematics, it has been revealed that a 5% yield is insufficient to cover the losses incurred. This analysis sheds light on the fair pricing baseline in the DeFi sector.