Compound Protocol Resolves rsETH Incident: Attacker Positions Liquidated, Full Market Operations Resume

Collaborative Response Neutralizes Threat

The Compound protocol has concluded its emergency response to a recent incident involving rsETH assets. According to an official update, following close coordination with the teams at Aave and KelpDAO, definitive actions were executed over the weekend.

Risk Positions Fully Eliminated

A key outcome of this operation is the complete elimination of all exposure linked to the exploiter. Specifically, all positions opened by the attacker within the WETH and wstETH Comet markets have been fully liquidated. Furthermore, the entirety of the rsETH assets held by the attacker has been transferred to a secured address under the control of DeFi United for safekeeping.

Compound emphasized that this rapid intervention successfully contained the risk from spreading further into the market, thereby safeguarding the funds of protocol suppliers and reserve pools, and preventing more extensive potential damage.

Full Market Operations Restored

Concurrent with the completion of the risk mitigation process, Compound has lifted the temporary transfer restrictions previously imposed on the WETH and wstETH Comet markets on Ethereum. This restoration means all Comet lending markets are now operating normally, with users free to conduct deposits, borrowings, and transfers without impediment.

The protocol team reiterated that its top priority remains ensuring the overarching security of the platform. It extended gratitude to the Aave and KelpDAO teams for their seamless cooperation and expert support throughout the incident, highlighting that such cross-protocol collaboration is vital for maintaining the resilience of the DeFi ecosystem.