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6 May 2026, 21:25

Aave Completes Liquidation of KelpDAO Hacker’s Remaining rsETH Position Across Ethereum and Arbitrum

BitcoinWorld Aave Completes Liquidation of KelpDAO Hacker’s Remaining rsETH Position Across Ethereum and Arbitrum Aave, a leading decentralized finance protocol, has executed the liquidation of the remaining rsETH position linked to the KelpDAO hacker. The move, reported by The Block, represents the final step in a previously disclosed recovery plan that required a governance vote to temporarily adjust the rsETH oracle price. The liquidation was carried out on both the Ethereum and Arbitrum networks, marking a coordinated effort to recover funds stolen in an earlier exploit. Background of the KelpDAO Exploit and Recovery Plan The KelpDAO hack, which occurred earlier this year, resulted in the theft of significant crypto assets, including rsETH tokens. In response, the Aave community and the KelpDAO team collaborated on a recovery strategy. A critical component of this plan was a governance proposal that temporarily modified the oracle price feed for rsETH on Aave. This adjustment was necessary to accurately reflect the asset’s value and enable the liquidation of the hacker’s position without causing undue market disruption or further losses to the protocol. The liquidation process on Aave is automated and triggered when a borrower’s collateral value falls below a certain threshold. By adjusting the oracle price, the community ensured that the hacker’s position could be liquidated in a controlled manner, returning funds to the protocol and its users. Execution Across Ethereum and Arbitrum The liquidation was executed on both the Ethereum mainnet and the Arbitrum layer-2 network. This dual-network approach reflects the hacker’s original activity, which spanned multiple chains to maximize the exploit’s impact. Aave’s cross-chain infrastructure allowed the recovery team to target positions on both networks simultaneously, ensuring a comprehensive recovery. According to on-chain data, the liquidation successfully closed the hacker’s remaining rsETH position, converting the collateral into Aave’s native stablecoin, GHO, and other assets. The recovered funds are expected to be returned to affected users as part of the ongoing remediation efforts. Implications for DeFi Security and Governance This event underscores the importance of robust governance mechanisms in decentralized finance. The ability of the Aave community to swiftly pass a proposal and adjust protocol parameters in response to a security incident demonstrates the flexibility and resilience of DeFi systems. However, it also highlights the challenges of oracle manipulation and the need for secure price feed mechanisms. For Aave, this successful recovery reinforces its reputation as a responsible and community-driven protocol. For the broader DeFi ecosystem, it serves as a case study in coordinated incident response and the potential for governance to mitigate the impact of hacks. Conclusion The liquidation of the KelpDAO hacker’s remaining rsETH position by Aave marks a significant milestone in the recovery process. Through a combination of governance action and technical execution, the protocol has demonstrated its ability to respond to security threats effectively. While the incident highlights ongoing risks in the DeFi space, it also provides valuable lessons for improving security and governance standards across the industry. FAQs Q1: What is rsETH and why was it targeted? rsETH is a liquid staking token issued by KelpDAO, representing staked ETH. The hacker exploited a vulnerability in the KelpDAO protocol to obtain a large amount of rsETH, which was then used as collateral on Aave. Q2: How did the oracle price adjustment work? The Aave governance community passed a proposal to temporarily adjust the oracle price feed for rsETH to a more accurate value. This allowed the protocol to liquidate the hacker’s position without causing a market panic or further losses. Q3: Will affected users get their funds back? Yes, the recovered funds from the liquidation are expected to be returned to affected users as part of the ongoing remediation plan coordinated by the KelpDAO team and Aave. This post Aave Completes Liquidation of KelpDAO Hacker’s Remaining rsETH Position Across Ethereum and Arbitrum first appeared on BitcoinWorld .

6 May 2026, 21:15

Linea Joins Linux Foundation, Open-Sources ZK-Rollup Core in Governance Shift

BitcoinWorld Linea Joins Linux Foundation, Open-Sources ZK-Rollup Core in Governance Shift Linea, the zero-knowledge Ethereum Virtual Machine (zkEVM) Layer 2 network developed by Consensys, has taken a significant step toward decentralized governance by joining the Linux Foundation Decentralized Trust (LFDT) and open-sourcing its core ZK-rollup technology. The move, confirmed by the project team, places Linea’s core technology under an open-source governance framework rather than under the sole control of a single company. What the Linux Foundation Membership Means The Linux Foundation Decentralized Trust is a well-established umbrella organization that hosts several open-source blockchain projects, including Hyperledger. By joining LFDT, Linea’s core ZK-rollup code will be governed under a neutral, community-driven framework. This is intended to increase transparency, encourage broader developer contributions, and reduce reliance on Consensys as the sole steward of the technology. However, it is important to note that Linea’s team will retain control over key operational functions. These include the sequencer, which orders transactions; the prover, which generates zero-knowledge proofs; upgrade authority; and the validator participation structure. This hybrid model balances open-source ideals with the practical need for network stability and security during the transition period. Why This Matters for Ethereum Layer 2 The open-sourcing of Linea’s ZK-rollup technology is a notable development in the broader Ethereum scaling ecosystem. ZK-rollups are widely considered a leading solution for achieving scalability without sacrificing security, as they bundle transactions off-chain and submit validity proofs to Ethereum’s mainnet. By making its codebase open source, Linea invites independent security audits, community contributions, and potential forks, which can accelerate innovation and trust in the technology. This move also places Linea in direct competition with other ZK-rollup projects that have long been open source, such as zkSync and StarkNet. The decision could influence developer preference and institutional adoption, as open-source governance is often a prerequisite for enterprise and government use cases. Implications for Decentralization and Control While the open-sourcing of the core technology is a positive signal for decentralization advocates, the retention of control over key network functions by the Linea team highlights the ongoing tension in the blockchain industry between rapid development and full decentralization. Critics may argue that true decentralization requires relinquishing control over sequencers and upgrade mechanisms. Supporters, however, point out that a phased approach allows for bug fixes, security patches, and performance optimizations without the risk of governance gridlock. The Linea team has indicated that further decentralization of these functions is planned over time, though no specific timeline has been provided. The Linux Foundation’s governance model provides a framework for this transition, but the pace will depend on technical maturity and community readiness. Conclusion Linea’s entry into the Linux Foundation Decentralized Trust and the open-sourcing of its ZK-rollup technology represent a meaningful step toward greater transparency and community involvement in the project’s development. While the network remains partially centralized in its operational control, the move aligns with broader industry trends toward open-source collaboration and gradual decentralization. For developers, enterprises, and users evaluating Ethereum Layer 2 solutions, this development adds a layer of trust and verifiability that was previously absent. FAQs Q1: What is Linea? Linea is a zero-knowledge Ethereum Virtual Machine (zkEVM) Layer 2 scaling network developed by Consensys. It uses ZK-rollup technology to process transactions off-chain while maintaining Ethereum’s security and compatibility. Q2: What does joining the Linux Foundation Decentralized Trust change? It places Linea’s core ZK-rollup code under an open-source governance framework managed by LFDT, rather than under the exclusive control of Consensys. This encourages community contributions and independent audits. Q3: Is Linea now fully decentralized? No. While the core technology is open source, the Linea team retains control over the sequencer, prover, upgrade authority, and validator structure. Further decentralization is planned for the future. This post Linea Joins Linux Foundation, Open-Sources ZK-Rollup Core in Governance Shift first appeared on BitcoinWorld .

6 May 2026, 21:00

Ethereum’s Next Major Upgrade Set To Reshape Its Scaling Performance – Here’s How

Ethereum and its ecosystem are known for introducing key upgrades that are aimed at improving the network’s efficiency. With its latest upgrade, which is currently gaining notable attention across the community, the leading network could see a major flip in its scaling narrative. New Levels Of Efficiency For The Ethereum Network As the market sees a fresh wave of adoption, a pivotal moment is approaching for Ethereum , which is centered around its next major upgrade. Anticipation is already building around this upgrade, dubbed Glamsterdam, as it begins to take shape. The proposed upgrade is anticipated to be crucial in furthering the network’s long-term strategy, with an emphasis on enhancing scalability, efficiency, and the general user experience. According to Ethereum Daily on X, the upcoming upgrade could be much bigger than what most people anticipate. Over the years, the primary scaling narrative of ETH has revolved around its layer 2 solutions. However, with the latest Glamsterdam upgrade, this narrative becomes bigger as the ETH network is improving the base layer in addition to growing around it. If this upgrade plays out well, Ethereum layer 1 will become faster, more powerful, and more sustainable, without the need to sacrifice decentralization. After a week-long core developer workshop in Svalbard, Ethereum contributors aligned on a bold target. This prediction states that the gas limit on the ETH network will reach $200 million following the inception of Glamsterdam, which is a key landmark in the network’s journey. What this means is that the Ethereum layer 1 solution might be gearing up for a major jump, with increased capacity. Meanwhile, the upgrade continues to protect decentralization, node accessibility, and network health in the long term. Transaction Count On ETH Hits A New Milestone Prior to the anticipated Glasterdam upgrade, activity on the Ethereum network is already booming, with transactions spiking to notable levels. Everstake, a leading global non-custodial staking infrastructure provider, has outlined a new milestone for ETH in terms of transaction counts carried out on the network. Data shows that the network closed April with an astonishing 72.83 million transactions, marking its highest monthly volume ever recorded. Such growth highlights increasing adoption and reinforces ETH’s position within the broader blockchain landscape. In Everstake’s view, adoption is not about hype, but rather, it is about the numbers on-chain. This massive milestone proves that the world is actively leveraging the Ethereum blockchain more than ever before. Given the wave of adoption, the network has become unstoppable, and conviction around it has never been stronger. ETH price was trading at the $2,370 zone after falling by nearly 1% in the last 24 hours, as shown on CoinMarketCap. While its price has moved downward, its trading volume has followed suit, recording an over 17% decline over the past day.

6 May 2026, 20:40

KelpDAO Shifts to Chainlink CCIP After $292M LayerZero Exploit

BitcoinWorld KelpDAO Shifts to Chainlink CCIP After $292M LayerZero Exploit KelpDAO, a prominent liquid staking protocol, has announced plans to migrate its cross-chain infrastructure from LayerZero’s OFT standard to Chainlink’s Cross-Chain Interoperability Protocol (CCIP). The decision follows a $292 million exploit that KelpDAO attributes to an internal issue within LayerZero’s infrastructure, raising fresh concerns about the security of widely used bridging protocols. Why KelpDAO Is Making the Switch In a statement, KelpDAO said the migration is part of a long-term strategy to reduce reliance on a single point of failure. The protocol’s team argued that the recent hack, which drained nearly $300 million in user funds, was not an isolated incident but indicative of deeper structural vulnerabilities in LayerZero’s architecture. While LayerZero has not publicly confirmed the root cause, the incident has accelerated a broader industry debate about cross-chain security standards. KelpDAO’s move to Chainlink CCIP is notable because CCIP is designed with multiple layers of risk management, including decentralized oracle networks, separate transaction validation, and rate limiting. Chainlink has positioned CCIP as a more secure alternative to existing bridging protocols, particularly for high-value asset transfers. Implications for the Cross-Chain Ecosystem The migration highlights a growing trend among DeFi protocols to prioritize security over speed or cost. KelpDAO’s decision could influence other protocols that currently rely on LayerZero’s OFT standard, especially those managing significant total value locked (TVL). Industry observers note that cross-chain bridges have been among the most targeted vectors in crypto attacks, with over $2 billion lost to bridge exploits since 2021. KelpDAO’s shift is a direct response to this systemic risk, signaling that protocols are increasingly willing to switch infrastructure providers to protect user funds. What This Means for KelpDAO Users For KelpDAO’s user base, the migration is expected to occur gradually, with the protocol maintaining compatibility with existing positions during the transition. No immediate changes to staking rewards or withdrawal processes have been announced. However, users should monitor official KelpDAO channels for specific timelines and any required actions. Conclusion KelpDAO’s migration from LayerZero to Chainlink CCIP is a significant vote of confidence in Chainlink’s cross-chain security model. It also serves as a cautionary signal for the broader DeFi industry about the importance of infrastructure resilience. As cross-chain activity continues to grow, the choice of interoperability protocol is becoming a critical risk management decision for protocols and their users alike. FAQs Q1: Why is KelpDAO leaving LayerZero? KelpDAO cited a $292 million hack linked to an internal LayerZero infrastructure issue as the primary reason. The protocol aims to reduce single-point-of-failure risk by adopting Chainlink CCIP. Q2: What is Chainlink CCIP? Chainlink CCIP (Cross-Chain Interoperability Protocol) is a secure messaging and token transfer protocol that uses multiple independent networks for validation, designed to prevent exploits common in simpler bridging solutions. Q3: Will KelpDAO users need to take action? KelpDAO has stated the migration will be handled gradually and automatically. Users are advised to follow official announcements for any specific steps, but no immediate action is required. This post KelpDAO Shifts to Chainlink CCIP After $292M LayerZero Exploit first appeared on BitcoinWorld .

6 May 2026, 20:10

Project Eleven has warned that “Q-Day" could arrive as early as 2030

A new analysis by Project Eleven warns that “Q-Day,” the hypothetical point when quantum computers can break widely used public-key cryptography, could arrive as early as 2030, potentially putting millions of bitcoins at risk. The estimate builds on recent demonstrations and academic work showing rapid progress in quantum attacks against elliptic curve cryptography, the mathematical foundation underpinning Bitcoin and other blockchain systems. Project Eleven and related research suggest roughly 6.9 million BTC may already be exposed under certain conditions, particularly where public keys are visible on-chain. Nearly 7 million BTC could be exposed on Q-Day The warning follows a recent milestone in which a researcher derived a private key from a public key using quantum hardware in a controlled experiment. Project Eleven said on April 24 that the result represents “the largest public demonstration to date” of such an attack class, Cryptopolitan reported. “The resource requirements for this type of attack keep dropping, and the barrier to running it in practice is dropping with them,” Chief Executive Alex Pruden said on April 24. The experiment targeted ECDSA (Elliptic Curve Digital Signature Algorithm), the cryptographic scheme used by Bitcoin to sign transactions and prove ownership. It relies on the hardness of the elliptic curve discrete logarithm problem, which quantum algorithms such as Shor’s algorithm are designed to solve. While the demonstration involved a small-scale key far below Bitcoin’s production standards, researchers say it illustrates a trajectory of accelerating capability. Framing the risk: Mosca’s inequality The findings are often contextualized using Mosca’s inequality, a framework stating that systems are at risk if the time needed to migrate to quantum-safe cryptography exceeds the time until quantum attacks become viable, minus the time data must remain secure. Under this framing, even uncertain timelines can imply immediate action if migration timelines are long. Industry guidance from standards bodies already treats post-quantum transition as a multi-year effort, reinforcing concerns about coordination delays. Project Eleven’s estimates align with broader industry analysis suggesting millions of bitcoin could be vulnerable in a worst-case quantum scenario, particularly those associated with reused addresses or previously revealed public keys. Separate research cited by Google in March 2026 similarly warned that advances in quantum computing could reduce the resources needed to break Bitcoin’s cryptographic assumptions, potentially enabling private keys to be derived rapidly once exposed. “The timelines are pushing from both ends. The quantum computers are getting more capable,” Pruden said in comments reported on March 31. Migration debate and proposed Bitcoin quantum upgrades The findings are likely to intensify debate around protocol changes such as BIP-361 — a proposed Bitcoin Improvement Proposal outlining a transition to quantum-resistant signature schemes. Advocates argue that early migration is essential due to Bitcoin’s decentralized governance, where upgrades require broad consensus and extended implementation periods. Critics, however, caution that current quantum hardware remains far from breaking real-world 256-bit keys and warn against overinterpreting early-stage experiments. Despite the warnings, experts remain divided on timing. Some argue that current demonstrations remain far from practical attacks on Bitcoin, noting that the gap between small-scale experiments and full cryptographic breaks is still substantial. Others point to falling qubit requirements and accelerating research as evidence that preparation windows may be narrowing faster than expected. Project Eleven said its projections should be viewed as risk-based scenarios rather than precise forecasts, emphasizing the need for early coordination across the ecosystem. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .

6 May 2026, 19:52

Cardano’s Hoskinson Officially Addresses Claims of Prioritizing Governance Over Scaling‬

Charles Hoskinson has pushed back against persistent criticism that Cardano’s leadership has prioritized governance over network scaling, calling the narrative misleading and frustrating. In a detailed post on X, the Input Output founder and Cardano architect stressed that scaling efforts began well before the Shelley era, with research dating back to at least 2018. The