Kelp restaking platform exploited for $293M, affecting nine crypto protocols

Kelp’s restaking platform was exploited for $293 million, triggering what’s been described as “cross-protocol contagion” across at least nine crypto protocols. The Ethereum price market on Polymarket currently shows a 99.9% chance of ETH staying above $1,700 on April 18.

The Ethereum April 18 price market has $11,994 in USDC traded. The market sits at 99.9% YES, but the exploit introduces new downside risk that could shift trader positioning. The April $4,000 ETH market looks harder to reach given the systemic exposure across nine protocols.

The $293 million drain matters because it compounds existing concerns about DeFi security, following incidents like Drift Protocol’s hack earlier this month. A YES share for Ethereum reaching $4,000 is priced at 22¢, paying $1 if it hits, a 4.5x return. That price implies traders see a quick recovery as unlikely.

Watch for announcements from the affected protocols and any statements from Vitalik Buterin or Ethereum core developers. A coordinated response could stabilize sentiment, while discovery of additional vulnerabilities would likely push prices lower.

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