
NotoriousPtG
2.7K posts

NotoriousPtG
@NotoriousPtG_2
Account for posts by @NotoriousPtG





This is a massive and growing problem for American national security. Unbelievable amounts of sensitive and classified information is captured, scraped, and sent back to foreign nations. And users have no idea. Nobody expects that their TV or monitor is a surveillance tool. When I have joked that Smart TVs should be illegal, I am only half-joking.






















There’s been a lot of talk about “Aave getting hacked” over the last 24 hours, but that’s not actually what happened. The root issue was a ~$290M exploit on Kelp DAO’s rsETH bridge, where an attacker was able to mint or steal a large amount of rsETH and then use it as collateral across DeFi. That’s where Aave comes in. The attacker deposited that rsETH and borrowed over $200M in ETH against it. Once the exploit became known, that collateral was effectively worthless, which created massive bad debt across the protocol. Aave itself wasn’t hacked. Its contracts held. The issue was what was accepted as collateral and how risk from one system can spill into another. This is the part people tend to miss. DeFi doesn’t break in isolation anymore. A single failure, like a bridge exploit, can cascade into lending markets, liquidity stress, and emergency freezes across multiple protocols. We’re also seeing this right after the Drift exploit earlier this month. Different root causes, but a similar pattern: composability means shared risk. The takeaway isn’t that Aave is broken, it's that bridges remain one of the weakest points, collateral assumptions matter as much as code security, and risk doesn’t stay contained the way people expect. DeFi is getting more powerful, but also more interconnected, and that cuts both ways. How do we move forward from this?


