Kelp DAO's cross-chain bridge, built on LayerZero, suffered a significant security breach, resulting in the theft of approximately $292 million worth of rsETH. The attacker transferred 116,500 rsETH, representing about 18% of its circulating supply, marking the largest DeFi attack of 2026 so far. In response, Aave, SparkLend, and Fluid have frozen markets related to rsETH, while Lido Finance has paused new deposits into its earnETH product. Kelp DAO is collaborating with LayerZero, audit firms, and external security experts to investigate the breach. Meanwhile, Curve Finance has suspended its LayerZero cross-chain bridge function as a precautionary measure. The incident highlights ongoing security challenges within the DeFi ecosystem, particularly concerning cross-chain bridges.