{"id":26530,"date":"2026-04-21T18:23:50","date_gmt":"2026-04-21T18:23:50","guid":{"rendered":"https:\/\/bitunikey.com\/news\/are-we-an-industry-of-clowns-curve-founder-urges-unified-defi-security-rulebook-after-rseth-shock\/"},"modified":"2026-04-21T18:24:07","modified_gmt":"2026-04-21T18:24:07","slug":"are-we-an-industry-of-clowns-curve-founder-urges-unified-defi-security-rulebook-after-rseth-shock","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/are-we-an-industry-of-clowns-curve-founder-urges-unified-defi-security-rulebook-after-rseth-shock\/","title":{"rendered":"\u2018Are we an industry of clowns?\u2019 Curve founder urges unified DeFi security rulebook after rsETH shock"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Curve founder Michael Egorov is pushing for chain-wide DeFi security standards after the Kelp rsETH exploit exposed how \u201ccentralized\u201d chokepoints can still wreck supposedly decentralized systems.<\/p>\n<div id=\"cn-block-summary-block_b8a985938db651d8232b6c1037c671e9\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Curve\u2019s Michael Egorov says many DeFi hacks stem from avoidable centralized weak points.<\/li>\n<li>He cites the KelpDAO rsETH exploit and Aave\u2019s response as a systemic warning.<\/li>\n<li>Egorov wants Ethereum and Solana foundations to help lead common security standards.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>Curve founder Michael Egorov has called for industry-wide DeFi security standards after what he describes as a wave of \u201cavoidable\u201d exploits driven by centralized single points of failure across supposedly decentralized stacks.<\/p>\n<p>In a detailed thread, Egorov argued that \u201ca large number of avoidable security incidents in DeFi stem from centralized single points of failure, which are harming the entire industry,\u201d urging teams to design out those choke points rather than try to \u201cremedy\u201d losses after the fact.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">So let me start. DeFi is the future of the World Financial System. That&#8217;s my belief, and this is why we are here.<\/p>\n<p>This amount of absolutely preventable hacks we see in DeFi (with root causes attributable to CENTRALIZED points of failure) is enormous recently. This damages out\u2026<\/p>\n<p>\u2014 Michael Egorov (@newmichwill) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/newmichwill\/status\/2046395511440089223?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">April 21, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>His comments follow the KelpDAO rsETH exploit, where an attacker drained around 116,500 rsETH\u2014worth roughly $292 million at the time\u2014by forging a cross-chain message and then pushed the stolen tokens into Aave as collateral, amplifying the damage through DeFi\u2019s composability.<\/p>\n<h1 class=\"wp-block-heading\" id=\"aave-rseth-and-preventable-single-points-of-failur\">Aave, rsETH and preventable \u2018single points of failure\u2019<\/h1>\n<p>According to LayerZero, which provided KelpDAO\u2019s messaging layer, the breach was possible because Kelp ran a single 1-of-1 DVN verifier with no backup, creating exactly the kind of single point of failure Egorov says should not exist in modern DeFi infrastructure.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>Once the forged message passed, the attacker used rsETH on Aave V3 to borrow large amounts of wrapped ether, triggering more than $10 billion in outflows from Aave as users rushed to withdraw, while the protocol froze rsETH markets on V3 and V4 to contain risk.<\/p>\n<p>Industry trackers estimate the broader Kelp-related losses at around $293 million, with nine connected protocols halting or restricting rsETH activity and Arbitrum\u2019s security council later seizing about 30,766 ETH tied to the attacker.<\/p>\n<p>Egorov said the episode illustrates how \u201cbridges, oracles, governance multisigs and admin keys\u201d can become hidden centralized dependencies, even when base lending or AMM contracts remain formally decentralized and audited.<\/p>\n<p>He also pointed to earlier bridge and liquidity exploits, including cross-chain attacks on protocols such as CrossCurve\u2014which works with Curve Finance and touts a multi-validator design to reduce single points of failure\u2014as examples of how design choices directly shape blast radius when something breaks.<\/p>\n<p>Egorov wants projects, auditors and risk teams to share concrete best practices on everything from cross-chain verifiers and rate limits to multisig policies and kill switches, then \u201cjointly establish DeFi security standards\u201d that can be applied across chains.<\/p>\n<p>He suggested the Ethereum Foundation and Solana Foundation should help convene the work, arguing that foundation-backed guidelines\u2014while not formal regulation\u2014could act as a common rulebook and make it harder for teams to ship architectures with obvious centralized choke points.<\/p>\n<p>As one commentator summarized in an industry report, repeated failures like the rsETH exploit and subsequent Aave stress risk cementing the perception that \u201cinstead of eliminating single points of failure, the industry keeps rebuilding them,\u201d undermining DeFi\u2019s core value proposition as an alternative to opaque, fragile TradFi rails.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Curve founder Michael Egorov is pushing for chain-wide DeFi security standards after the Kelp rsETH exploit exposed how \u201ccentralized\u201d chokepoints can still wreck supposedly decentralized systems. Summary Curve\u2019s Michael Egorov&hellip;<\/p>\n","protected":false},"author":1,"featured_media":26531,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-26530","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/26530","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=26530"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/26530\/revisions"}],"predecessor-version":[{"id":26532,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/26530\/revisions\/26532"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/26531"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=26530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=26530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=26530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}