Crypto Community Reels After Major Hack Exposes DeFi Vulnerabilities

A $292 million hack of Kelp DAO has sent shockwaves through the crypto industry, with many warning of deeper flaws in the way DeFi is constructed. The incident has led to a significant decline in deposits, with the total value locked dropping from $26.4 billion to nearly $20 billion. The exploit has also raised questions about the security of cross-chain infrastructure and the potential for contagion risk. Developers are urging projects to review their configurations, particularly those relying on cross-chain messaging, to prevent similar incidents in the future.