We're silent, but we keep building v3.
Meanwhile, we added some fresh loops to v2, courtesy of @re:
→ PT-reUSD-10DEC2026/USDC 🔥
→ PT-reUSD-10DEC2026/USDT 🔥
reUSD is a stable, yield-bearing token from re.xyz which is backed by T-bills and delta-neutral ETH basis strategies. It targets 6% - 8% baseline APY without insurance risk, with instant liquidity. More info on docs.re.xyz/
⚠️ Trading on leverage carries significant risk. This is not financial advice.
Contango builds positions on variable rate markets. If you don’t understand its mechanics, refrain from trading or staking, and read: docs.contango.xyz/
Contango 💃🏾 retweeted
rsETH withdrawals are now live.
Bridging and claims are active too, as part of the coordinated restart plan.
Exchange rates will be updated around 4:30pm CET on May 15th, along with eigen claims. This should reflect all staking rewards accrued to rsETH holders during the pause.
What’s next?
- Deposits will reopen shortly after a brief stabilization window.
- The remaining tranches of rsETH will be sent over the next two weeks by @aave and Kelp to fully refill the lockbox.
rsETH remains fully backed across mainnet and L2s.
Contango 💃🏾 retweeted
Kelp and Aave have successfully completed a series of steps for rsETH backing, including burning the exploiter’s rsETH on Arbitrum.
117,132 rsETH will be progressively refilled from Aave Recovery Guardian and Kelp Recovery Safe into the LayerZero OFT adapter on mainnet over the next two weeks. rsETH on Mainnet and L2s remains fully backed at all times.
Kelp will unpause withdrawals, tentatively within 24 hours, after the first tranche to the LayerZero OFT adapter. All rsETH operations - deposits, redemptions, bridging, and claims - will resume as usual after contracts are unpaused.
Last week, we completed a security hardening pass across all LayerZero bridging configurations: verification now requires 4 independent attestors, block confirmations have been raised from 42 to 64, and all L2-to-L2 routes have been deprecated. These changes have been audited by BailSec. We are in the process of migrating to CCIP for further strengthened cross-chain bridging.
Thanks to the @aave team and our DeFi United partners for being the cornerstone of this recovery.
Contango 💃🏾 retweeted
Kelp confirms it has fulfilled its pledged contribution to the recovery fund.
Post April 18, DeFi United led by @aave has defined the path to restore rsETH backing and return markets to normal operation.
We appreciate the support from our partners @Mantle_Official @Consensys @arbitrum @StaniKulechov @ether_fi @LidoFinance @The3D_ @golemproject @bgdlabs @Compound_xyz who played a pivotal role in the DeFi United recovery fund.
As these contributions are realized, rsETH backing will be progressively restored. We will keep our community updated.
The folks at @otomato_xyz delivered notifications for Contango v2!
You can now enable different notifications via otomato.xyz, such as:
→ health factor dropping
→ APYs flipping negative
→ X account tweeting
100% recommended.
Introducing the Otomato app
After 2,000+ users on Telegram, we built the app we all wished existed:
Actionable alerts that tell you when to act BEFORE it's too late:
- Protocol security incidents
- Liquidation warnings
- Position out of range
- Limit orders filled
- Airdrop eligibility
See all your positions in one place with live APY, PnL, and smarter risk monitoring.
100+ alert types. 1,000+ protocols. FREE.
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⚠️ Trading on leverage carries significant risk. This is not financial advice.
Contango builds positions on variable rate markets. If you don’t understand its mechanics, refrain from trading or staking, and read: docs.contango.xyz/
Contango worked with Pablo from @_SEAL_Org and @opsek_io to tighten our security practices already in 2024.
Both users and protocols need to put OpSec on their audit checklist NOW.
Just use Pablo.
The threat landscape has fundamentally shifted. Every company shipping needs to level up their Operational Security NOW.
Axios, Resolv Labs, Drift Protocol, LayerZero + Kelp, Vercel, Lovable, CoW Swap, Zerion, Silo Finance: all compromised in the last few weeks.
This is not a bad stretch. It's the new baseline. And it's going to get FAR worse before it gets better.
No one is prepared for what's coming.
⚠️ Trading on leverage carries significant risk. This is not financial advice.
Contango builds positions on variable rate markets. If you don’t understand its mechanics, refrain from trading or staking, and read: docs.contango.xyz/
Contango 💃🏾 retweeted
Update on rsETH incident:
WETH reserves on the Ethereum Core V3 market have been unfrozen and users can supply WETH to Ethereum Core V3 again. WETH LTV remains at 0.
WETH reserves on Ethereum Prime, Arbitrum, Base, Mantle, and Linea remain frozen.
Aave service providers will continue to work on next steps and provide updates accordingly.
Following the rsETH/LayerZero exploit, Contango v2 continues to operate normally, with limited functions for the affected markets.
Frozen markets on @aave still allow users to repay debt and close loops. Reach out on Discord if you need help managing your positions.
⚠️ Trading on leverage carries significant risk. This is not financial advice.
Contango builds positions on variable rate markets. If you don’t understand its mechanics, refrain from trading or staking, and read: docs.contango.xyz/
Contango 💃🏾 retweeted
Earlier today we identified suspicious cross-chain activity involving rsETH. We have paused rsETH contracts across mainnet and several L2s while we investigate.
We are working with @LayerZero_Core, @unichain, our auditors and top security experts on RCA.
We will keep you posted as we learn more about this situation. Please follow only the official @KelpDAO handle for the updates.
Contango 💃🏾 retweeted
Euler is aware of the recent security incident involving Kelp DAO’s rsETH.
As a precaution, Ethereum mainnet and Linea were paused to prevent the affected assets being used as collateral. Both have now been unpaused.
We are actively monitoring the situation and will update further in due course.
Contango 💃🏾 retweeted
The rsETH markets on Aave V3 and Aave V4 have been frozen. Aave's contracts have not been exploited and this is an exploit related to rsETH.
The freeze follows an exploit of the Kelp DAO rsETH bridge. Freezing the rsETH markets prevents new deposits and borrowing against rsETH collateral while the situation is assessed.
We are reviewing information about rsETH borrows on Aave that occurred after the exploit and will share more details as soon as possible.
If the protocol accumulates bad debt from this incident, we'll explore paths to offset the deficit.
V3 sneak peeks incoming soon.
But first, we dissected V2 data to see what worked, what didn't, and what we're fixing.
(link below)
⚠️ Trading on leverage carries significant risk. This is not financial advice.
Contango builds positions on variable rate markets. If you don’t understand its mechanics, refrain from trading or staking, and read: docs.contango.xyz/
