Morpho co-founder and CEO Paul Frambot has addressed concerns regarding the recent KelpDAO incident, emphasizing the limited impact on Morpho's operations. Frambot assured that Morpho's smart contracts remain secure and functional, with only about $1 million in ETH borrowed using rsETH as collateral across two isolated markets. Out of approximately 500 Morpho Vaults with deposits over $10,000, only two are involved in these markets. Frambot highlighted that Morpho's isolated market design ensures that other vaults are unaffected. While direct exposure is minimal, he cautioned that secondary effects might occur due to broader ecosystem exposure, urging stakeholders to remain vigilant.