Traders Doubt Kelp Will Distribute Losses Following $292 Million Exploit

Traders on Polymarket believe it is unlikely that Kelp DAO will spread the losses from the recent $292 million exploit to all users, with odds at 14%. The attack, which drained 116,500 rsETH from a LayerZero-powered bridge, has left parts of the system undercollateralized. 'Socializing the losses' would involve Kelp redistributing the shortfall across all rsETH holders, including those on Ethereum. This approach has been used in the past, such as when Bitfinex imposed losses on all users after a $60 million hack. However, Kelp's situation is more complex, with losses fragmented across different user groups and platforms, making a system-wide redistribution technically and politically challenging.