According to DB News, the DOJ is cleared to sell 69,370 $BTC($6.58B) confiscated from Silk Road.

April 20th: Cascading effects from the KelpDAO rsETH hack have begun to ripple through the DeFi ecosystem, with stablecoin borrowing rates and utilization rates rising at multiple Solana-based lending protocols: - **Jupiter Lend**: USDC supply stands at $4.21 billion, with $3.4 billion borrowed. Excluding protocol reserve liquidity, utilization has surged to ~99% (nearly all available liquidity is lent out). Current borrowing rate: 4.36%. - **Kamino Prime Market**: Total USDC supply ~$1.868 billion, borrowings ~$1.788 billion → utilization ~96%, borrowing rate 8.92%. **Kamino Main Market**: Total USDC supply ~$1.72 billion, borrowings ~$1.64 billion → utilization ~95.75%, borrowing rate 10.2%. - **Save Finance (formerly Solend)**: Borrowing utilization exceeds 70%, borrowing rate 3.9%. - **Marginfi**: USDC borrowing utilization hits 88.32%, borrowing rate 7.65%.

April 20: Ethena announced in an official post that it is extending the suspension of its LayerZero OFT cross-chain bridge, citing an unsatisfactory root cause analysis of the rsETH incident. The protocol also released its latest Proof of Reserve, audited by four independent third-party firms: Chainlink, Chaos Labs, LlamaRisk, and Harris & Trotter. The audit confirms Ethena’s USDe collateralization ratio remains above 100%. Results are publicly available on Ethena’s transparency page and data dashboard. The team noted it will continue monitoring the situation and share further updates.

April 20th — Per EmberCN, a whale that liquidated a $398 million ETH long position at the peak (netting $684.7 million in profit) 4 days ago reentered the market today following a pullback to open a new long position. The whale now holds a 44,000 ETH long position across two wallets, with a position value of $100 million and an entry price of $2,289 per ETH.

April 20: Aave has issued its latest update on the rsETH incident. Analysis shows rsETH on the Ethereum mainnet is fully collateralized. As a precaution, rsETH remains frozen on Aave V3 and V4. WETH reserves are also frozen in affected markets: Ethereum, Arbitrum, Base, Mantle, and Linea. Aave is actively verifying details and evaluating potential fixes.

On April 20, DefiLlama founder 0xngmi outlined three potential moves KelpDAO could take in the wake of the rsETH exploit. Each option carries major downsides, and the final call will put KelpDAO’s reputation and Aave’s risk appetite to the test. ### **Path 1: Spread Losses Across All Users** KelpDAO is pushing a plan to impose a uniform 18.5% loss on all rsETH holders. Right now, ~666,000 rsETH tokens are collateralized across the Aave network—mostly highly leveraged on mainnet and L2s (assuming a 95% liquidation LTV). If losses are socialized, all mainnet positions would be wiped out, creating ~$216M in bad debt. Umbrella Protocol can cover $55M of that, while Aave’s Treasury would absorb an extra $85M, leaving a ~$76M gap. KelpDAO might try to fill this hole via borrowing or selling Aave tokens (currently worth ~$51M), but this would still hit Aave hard—and all users would end up sharing the loss. ### **Path 2: Rug L2 rsETH Holders Outright** KelpDAO wants to protect only

April 20th: Following the KelpDAO hack that led to roughly $177 million to $200 million in losses for Aave, numerous whales withdrew their funds from the protocol as a precaution. Per Defillama data, Aave’s total value locked (TVL) dropped by around 31.7% in the wake of the incident—falling from approximately $26.4 billion pre-incident to about $18 billion.