ETH Developer Warns: Ethereum Needs Validity Proofs to Stay Competitive

TL;DR

Ethereum developer Barnabé Monnot warns that recent crypto hacks, including a $293 million exploit of KelpDAO, highlight the need for validity proofs to maintain Ethereum's competitiveness. The exploit involved stolen rsETH and raised concerns across the crypto market.

Key points

Ethereum developer Barnabé Monnot warns of security risks
KelpDAO exploit resulted in $293 million theft
116,500 rsETH was stolen during the attack
Recent hacks have affected multiple DeFi protocols
Calls for validity proofs to enhance Ethereum's competitiveness

Mentioned in this story

KelpDAOEthereum Foundation

LayerZerorsETH

Ethereum Foundation developer and researcher Barnabé Monnot indicates that the latest crypto hacks highlight a larger goal for Ethereum as well as many crypto assets.

Over the weekend, the crypto market woke up to news regarding the exploit of the KelpDAO protocol. A $293 million exploit of Kelp’s bridge allowed attackers to use stolen rsETH, a liquid restaking token widely used in DeFi, as collateral to borrow funds on lending platforms, sparking concerns from the broader crypto market.

The attacker stole about 116,500 rsETH, a token issued by Kelp DAO that represents "restaked" Ethereum by targeting a bridge built using LayerZero, a system that allows different blockchains to communicate. The total losses are estimated at roughly $293 million, making it the largest DeFi exploit of 2026.

The attack affected cross-chain infrastructure, restaking models and lending markets at the same time and follows a string of recent incidents.

The hack occurred in an unusually hostile stretch for DeFi — particularly this month. Solana-based perpetuals protocol Drift was drained of about $285 million in an April 1 attack, and at least a dozen smaller protocols have been exploited in the weeks since, including CoW Swap, Zerion, Rhea Finance and Silo Finance.

Hack highlights larger goal for Ethereum

In a recent tweet, Ethereum Foundation developer and researcher Barnabé Monnot states that the recent hacks serve as a reminder not only for Ethereum but for other crypto assets on the major goal ahead. He highlighted that the goal should be to make Ethereum not only the transport layer but also the issuer-of-record.

Hacks like these remind us that for many assets, the goal should be to make Ethereum not only the transport layer, but also the issuer-of-record.

Validity proofs and fast finality are essential to remove latency across the board and compete with faster alternatives.

— barnabe.eth (@barnabemonnot) April 20, 2026

Monnot noted that validity proofs and fast finality are essential to remove latency across the board and compete with faster alternatives, with Ethereum making steady progress toward this vision.

Q&A

What was the KelpDAO exploit and how much was stolen?

The KelpDAO exploit involved the theft of approximately 116,500 rsETH, totaling around $293 million, making it the largest DeFi exploit of 2026.

How does the KelpDAO hack impact Ethereum's future?

The hack has raised concerns about Ethereum's security and competitiveness, prompting calls for the implementation of validity proofs to enhance its resilience.

What other DeFi protocols have been affected by recent hacks?

Recent hacks have also targeted protocols like Drift, CoW Swap, Zerion, Rhea Finance, and Silo Finance, contributing to a troubling trend in the DeFi space.