logo
    • Buy Crypto
    • Markets
    • Futures
    • Spot
    • Earn
    • Affiliates & AI
    • More
    1. WEEX
    2. Crypto News
    3. The $293 million bug wasn't in the code; so, what's the deal with the "DVN Configuration Bug," which led to the largest hack of 2026?

    The $293 million bug wasn't in the code; so, what's the deal with the "DVN Configuration Bug," which led to the largest hack of 2026?

    By: blockbeats|2026/04/19 05:01:34
    0
    Share
    copy
    Prefer us on GooglePrefer us on Google
    ZROZRO
    00.00%--
    AAVEAAVE
    00.00%--
    COMPCOMP
    00.00%--
     

    On April 18, 2026, the liquidity restaking protocol of Kelp DAO was exploited, with the attacker siphoning off 116,500 rsETH from a cross-chain bridge within hours, amounting to approximately $293 million at the time. The entire process was efficiently executed with a hint of anomaly, starting from a forged cross-chain message to laundering the stolen funds across Aave V3, Compound V3, and Euler lending protocols with real assets borrowed. The attacker swiftly exited with $236 million worth of WETH on the same day. Aave, SparkLend, and Fluid promptly froze the rsETH market.

    This marks the largest DeFi exploit event of 2026.

    However, one aspect distinguishes this attack from most hacking incidents. The smart contract code of Kelp DAO had no vulnerabilities. Security researcher @0xQuit, involved in the investigation, stated on X, "From what I currently understand, this is a combination of two issues: a 1-of-1 DVN configuration and the compromise of the DVN node itself." In their official statement, LayerZero did not blame the contract code, categorizing the issue as an "rsETH vulnerability" rather than a "LayerZero vulnerability."

    The 93 million bug wasn't in the code; so, what's the deal with the

    $293 million was not in any line of code. It was concealed within a misconfigured parameter during deployment.

    The common logic behind DeFi security audits is: find the contract, read the code, find vulnerabilities. This logic operates quite smoothly when dealing with code logic vulnerabilities. Tools like Slither and Mythril are mature in detecting known patterns such as reentrancy attacks and integer overflows. The widely promoted LLM for assisting in code audits also has some capability in identifying business logic vulnerabilities (e.g., flash loan arbitrage paths).

    However, in this matrix, two rows are marked in red.

    Configuration-level vulnerabilities fall into a structural blind spot in tool-based audits. The issue with Kelp DAO was not in a .sol file but in a parameter—DVN threshold—written during protocol deployment. This parameter determines how many validating nodes a cross-chain message must pass through to be considered valid. It's not in the code, not within Slither's scanning scope, nor in Mythril's symbolic execution path. According to Dreamlab Technologies' comparative study, Slither and Mythril detected 5/10 and 6/10 vulnerabilities in the tested contract, respectively. However, these results are based on the premise that the vulnerabilities exist in the code. According to IEEE research, even at the code level, existing tools can only detect 8%-20% of exploitable vulnerabilities.

    From the perspective of the current audit paradigm, there is no tool that can "detect whether the DVN threshold is reasonable." To detect this type of configuration risk, what is needed is not a code analyzer, but a specialized configuration checklist: "Is the number of DVNs for the cross-chain protocol ≥ N?" "Is there a minimum threshold requirement?" Such questions are currently not covered by standardized tools and there is no widely recognized industry standard.

    Also within the red zone is key and node security. In @0xQuit's description, it is mentioned that a DVN node was "compromised," which falls under Operational Security (OpSec) and is beyond the detection boundary of any static analysis tool. Whether it is a top-tier auditing firm or an AI scanning tool, none have the ability to predict whether a node operator's private key will be leaked.

    This attack simultaneously triggered two red zones in the matrix.

    DVN is the cross-chain message verification mechanism of LayerZero V2, fully named Decentralized Verifier Network. Its design philosophy is to entrust security decision-making to the application layer: each protocol connecting to LayerZero can choose the number of DVN nodes required to confirm before allowing a cross-chain message to pass.

    This "flexibility" has created a spectrum.

    Kelp DAO chose the far-left end of the spectrum with a 1-of-1, requiring only one DVN node to confirm. This means a fault tolerance of zero, as an attacker only needs to compromise that single node to forge any cross-chain message. In contrast, Apechain, also connected to LayerZero, configured more than two required DVNs and was not affected by this event. The wording in the LayerZero official statement was, "All other applications remain secure," implying that security depends on the selected configuration.

    The standard industry recommendation is at least 2-of-3, where an attacker would need to compromise two independent DVN nodes simultaneously to forge a message, increasing fault tolerance to 33%. A high-security configuration like 5-of-9 can raise fault tolerance to 55%.

    The issue is that external observers and users cannot see this configuration. Also known as being "supported by LayerZero," the backend could range from 0% fault tolerance to 55% fault tolerance, both referred to as DVN in the documentation.

    Seasoned crypto investor Dovey Wan, who experienced the Anyswap incident, directly stated on platform X: "LayerZero's DVN turned out to be a 1/1 validator... All cross-chain bridges should immediately undergo a comprehensive security review."

    In August 2022, a vulnerability was discovered in the Nomad cross-chain bridge. Someone replicated the initial attack transaction, made minor modifications, and found success, leading to hundreds of addresses replicating the exploit and draining $190 million in a matter of hours.

    Postmortem analysis by Nomad attributed the vulnerability to "initializing the trusted root as 0x00 during a routine upgrade." This was a configuration error that occurred during the deployment phase. The Merkle proof validation logic and the code itself were sound; the issue stemmed from an incorrect initial value.

    Combining this incident with previous ones involving Nomad, configuration/initialization vulnerabilities have now resulted in approximately $482 million in losses. In the history of cross-chain bridge exploits, this category's scale now rivals that of key exposure incidents (e.g., Ronin $624 million, Harmony $100 million, Multichain $126 million, totaling around $850 million).

    However, the product design of the code auditing industry has never been focused on this category of vulnerabilities.

    Most discussions in the industry still revolve around code logic bugs. Incidents like Wormhole's $326 million exploit due to signature verification bypass and Qubit Finance's $80 million loss due to a fake deposit event are well-analyzed with detailed vulnerability reports, CVE references, and reproducible PoCs, making them suitable for audit tool training and optimization. Configuration layer issues are not explicitly coded, making it challenging to address within the production cycle.

    One notable detail is the distinct triggering mechanisms of the two configuration-related events. Nomad's error stemmed from inadvertently setting an incorrect initial value during a routine upgrade, constituting a mistake. On the other hand, Kelp DAO's 1-of-1 incident was an active configuration choice—LayerZero protocol did not prohibit this option, and Kelp DAO did not violate any protocol rules. A "compliant" configuration choice and a "mistaken" initial value both led to the same outcome in the end.

    The execution logic of this attack was straightforward. A forged cross-chain message informed the Ethereum mainnet that "someone had already locked up an equivalent asset on another chain," triggering the minting of rsETH on the mainnet. The minted rsETH itself had no real backing, but its on-chain record was "valid" and could be accepted by lending protocols as collateral.

    The attacker then dispersed 116,500 rsETH to Aave V3 (Ethereum and Arbitrum), Compound V3, and Euler, borrowing over a total of $236 million in real assets. According to multiple sources, the standalone default estimate for Aave V3 is around $177 million. Aave's security module Umbrella, used to absorb default losses, has a WETH reserve of around $50 million with a coverage ratio of less than 30%, with the remaining amount to be borne by aWETH stakers.

    This ultimately falls on those who simply wanted to earn some WETH interest.

    As of the time of writing, LayerZero is still conducting a joint investigation with the security emergency response organization SEAL Org and plans to release a post-incident analysis report in collaboration with Kelp DAO once all information is obtained. Kelp DAO has stated that they are working on "active remediation."

    The $293 million exploit is not in the code. The phrase "audit passed" did not cover the location of that parameter.

    -- Price

    --

    This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.

    You may also like

    Wall Street Morning Report: Non-Farm Payrolls Surprise Sparks Rate Cut Trades, Lightwave Begins to Steal Storage Spotlight, 'Short Storage, Long Light' Becomes New Battleground

    Wall Street Morning Report: Non-Farm Payrolls Surprise Sparks Rate Cut Trades, Lightwave Begins to Steal Storage Spotlight, 'Short Storage, Long Light' Becomes New Battleground

    Historic Cleanup of the Cryptocurrency Industry Changes the Game in the Market

    Historic Cleanup of the Cryptocurrency Industry Changes the Game in the Market

    The cleanup of the cryptocurrency industry has become one of the main events of 2026: after several years of rapid growth, nearly 100 projects and platforms have closed, gone bankrupt, or effectively ceased operations, and the market is increasingly shifting from a race for hype to a struggle for su...
    Grayscale pulls 3 altcoin ETF filings in 190 seconds

    Grayscale pulls 3 altcoin ETF filings in 190 seconds

    Analysis Guide on CoreWeave's Latest Backlog|Pre-Earnings Risk Assessment and Cryptocurrency Impact Forecast

    Analysis Guide on CoreWeave's Latest Backlog|Pre-Earnings Risk Assessment and Cryptocurrency Impact Forecast

    Get ahead of CoreWeave's August 2026 outlook! Compare the Q1 backlog of $99.4 billion with the latest market forecast of $25.5 billion and don't miss investment opportunities.
    Explaining Why Iran's Toll Plan Threatens the No-Tolls Hormuz Agreement

    Explaining Why Iran's Toll Plan Threatens the No-Tolls Hormuz Agreement

    While the Iranian Parliament considers a 7% toll in the Strait of Hormuz, the Foreign Ministry is finalizing a toll-free route with Oman. Stay informed and consider optimal responses now.
    Everyone Thinks Cryptocurrency is Dead, But He Says It's About to Explode

    Everyone Thinks Cryptocurrency is Dead, But He Says It's About to Explode

    Bitget UEX Daily Report | Berkshire Ends Net Selling Cycle, Cash Heavy on Google; No Selling Pressure After First Unlock, SpaceX (SPCX.US) Soars for Second Consecutive Trading Day (August 10, 2026)

    Bitget UEX Daily Report | Berkshire Ends Net Selling Cycle, Cash Heavy on Google; No Selling Pressure After First Unlock, SpaceX (SPCX.US) Soars for Second Consecutive Trading Day (August 10, 2026)

    CLARITY Act: 'Not a Deadlock but a Time to Buy' ... Esper Says It's Necessary for U.S. Financial Security

    CLARITY Act: 'Not a Deadlock but a Time to Buy' ... Esper Says It's Necessary for U.S. Financial Security

    Carnivorous Bacteria in the Gulf: Louisiana Reports Five Deaths and Urges Caution

    Carnivorous Bacteria in the Gulf: Louisiana Reports Five Deaths and Urges Caution

    Louisiana is facing an unusual increase in infections caused by Vibrio vulnificus, with nine cases and five deaths reported this year. The heat and climate change are expanding this deadly bacteria northward, and authorities are urging caution for swimmers.
    Wintermute Obtains Broker-Dealer Qualification from SEC and FINRA, Expanding into the U.S. Securities Market

    Wintermute Obtains Broker-Dealer Qualification from SEC and FINRA, Expanding into the U.S. Securities Market

    Oil Industry Profits: The Impact of Geopolitics on the Giants' Cash Flow

    Oil Industry Profits: The Impact of Geopolitics on the Giants' Cash Flow

    Financing Weekly Report | Mastercard Acquires Stablecoin Infrastructure Company BVNK; Yellow Card Completes $40 Million Strategic Financing with Participation from Standard Chartered and Sony

    Financing Weekly Report | Mastercard Acquires Stablecoin Infrastructure Company BVNK; Yellow Card Completes $40 Million Strategic Financing with Participation from Standard Chartered and Sony

    Can Reinsurance Become an On-Chain Revenue Source? Alea Research Highlights Re's RWA-DeFi Integration Model

    Can Reinsurance Become an On-Chain Revenue Source? Alea Research Highlights Re's RWA-DeFi Integration Model

    The attempt to transplant reinsurance as a real-world asset (RWA) onto the blockchain is emerging as a new revenue source in the DeFi market. Alea Research recently analyzed that the Re protocol has established a structure that connects stablecoin liquidity with regulated reinsurance collateral, pro...
    U.S. Taxpayers' Cryptocurrency Reporting Stays Between 32% and 56%: Study

    U.S. Taxpayers' Cryptocurrency Reporting Stays Between 32% and 56%: Study

    Astros and Wallus Release Open Standard for Verifiable Trading Data WVTS

    Astros and Wallus Release Open Standard for Verifiable Trading Data WVTS

    An open standard for trading data necessary for the spread of AI agent-based trading has been released. Astros, the representative decentralized exchange for perpetual futures in the Sui ecosystem, announced the unveiling of the 'Wallus Verifiable Trading Data Standard (WVTS)'.
    NYSE Develops On-Chain Payment Platform for Tokenized Securities

    NYSE Develops On-Chain Payment Platform for Tokenized Securities

    Commercial-Space Earnings Cluster, AI Power Infrastructure and China Semiconductors Draw Attention | WEEX TradFi Daily Market Brief (August 10, 2026)

    Commercial-Space Earnings Cluster, AI Power Infrastructure and China Semiconductors Draw Attention | WEEX TradFi Daily Market Brief (August 10, 2026)

    Today's WEEX market highlights, covering AI power infrastructure, China's semiconductor sector, humanoid robotics, Berkshire Hathaway's capital-allocation shift and commercial-space earnings previews.
    5 Charts to Understand Crypto Payment Cards: Stablecoins Transition from Blockchain to Real-World Spending

    5 Charts to Understand Crypto Payment Cards: Stablecoins Transition from Blockchain to Real-World Spending

    Ethereum Dominates RWA, While Solana Gains More Space in Trading

    Ethereum Dominates RWA, While Solana Gains More Space in Trading

    Ethereum maintains its leading position in the global market for Real World Asset (RWA) tokenization, while Solana emerges as a major alternative network in the spot trading of these assets.
    Wall Street Conspiracy Theory: Did Waller Intentionally Raise Long-Term U.S. Treasury Yields?

    Wall Street Conspiracy Theory: Did Waller Intentionally Raise Long-Term U.S. Treasury Yields?

    Vitalik Buterin Supports Signal's Phone Number Concealment Feature

    Vitalik Buterin Supports Signal's Phone Number Concealment Feature

    Investigation into Zhou, known as 'Bobby', linked to $10 billion WLFI purchase

    Investigation into Zhou, known as 'Bobby', linked to $10 billion WLFI purchase

    Guren “Bobby” Zhou, identified as the entrepreneur behind Aqua 1, which purchased $100 million worth of WLFI tokens, is still under investigation in a money laundering case in the UK.
    Cryptocurrency in the Second Week of August | Financial Services Agency Standardizes Cyber Attack Reporting Format

    Cryptocurrency in the Second Week of August | Financial Services Agency Standardizes Cyber Attack Reporting Format

    Streaming Platforms: How to Use Your Dollars to Pay Less and Avoid Excessive Taxes

    Streaming Platforms: How to Use Your Dollars to Pay Less and Avoid Excessive Taxes

    Reviewing subscriptions, eliminating duplicate services, and choosing the best way to settle accounts can reduce monthly household expenses.
    Trump and Islamophobia: The Chorus That No Longer Mobilizes Votes

    Trump and Islamophobia: The Chorus That No Longer Mobilizes Votes

    President Trump has maintained his hostile rhetoric and policies towards Muslims, but Islamophobia no longer serves as a political weapon. Muslim voters are divided, Democrats have changed their language, and relations with Arab governments complicate the narrative.
    Situational Awareness Bets US$ 400 Million on Chips After Losing Half of Its Fund

    Situational Awareness Bets US$ 400 Million on Chips After Losing Half of Its Fund

    China Runs Out of Chinese Data to Train AI: The New Wall Is Not Chips

    China Runs Out of Chinese Data to Train AI: The New Wall Is Not Chips

    China faces a new bottleneck in the AI race: the shortage of training data in Chinese. While chips dominate the debate, experts warn that the 1.3% of web content in Chinese could hinder the development of AI models in the country.
    XRP: ETFs Continue to Rise, but the Market Shows Signs of Fragility

    XRP: ETFs Continue to Rise, but the Market Shows Signs of Fragility

    World Liberty received $100 million from businessman investigated for money laundering: NYT

    World Liberty received $100 million from businessman investigated for money laundering: NYT

    Amazon Plans Power Plant That Could Be the Largest Polluter in the U.S.

    Amazon Plans Power Plant That Could Be the Largest Polluter in the U.S.

    Wall Street Morning Report: Non-Farm Payrolls Surprise Sparks Rate Cut Trades, Lightwave Begins to Steal Storage Spotlight, 'Short Storage, Long Light' Becomes New Battleground

    Historic Cleanup of the Cryptocurrency Industry Changes the Game in the Market

    The cleanup of the cryptocurrency industry has become one of the main events of 2026: after several years of rapid growth, nearly 100 projects and platforms have closed, gone bankrupt, or effectively ceased operations, and the market is increasingly shifting from a race for hype to a struggle for su...

    Grayscale pulls 3 altcoin ETF filings in 190 seconds

    Analysis Guide on CoreWeave's Latest Backlog|Pre-Earnings Risk Assessment and Cryptocurrency Impact Forecast

    Get ahead of CoreWeave's August 2026 outlook! Compare the Q1 backlog of $99.4 billion with the latest market forecast of $25.5 billion and don't miss investment opportunities.

    Explaining Why Iran's Toll Plan Threatens the No-Tolls Hormuz Agreement

    While the Iranian Parliament considers a 7% toll in the Strait of Hormuz, the Foreign Ministry is finalizing a toll-free route with Oman. Stay informed and consider optimal responses now.

    Everyone Thinks Cryptocurrency is Dead, But He Says It's About to Explode

    ...
    Exclusive new user rewards
    Sign up to get 10 USDT
    Exclusive new user rewardsSign up

    Contents

    ZRO

    Latest articles

    2026/05/21

    FTX/Alameda Wallet Transfers Over $8 Million in ZRO Tokens to Wintermute

    Key Takeaways An FTX/Alameda-associated wallet moved 4.126 million ZRO tokens to market maker Wintermute, with an approximate value…

    ZROZRO
    00.00%--
    2026/05/06

    Why is a16z Crypto raising another $2.2 billion to heavily invest in Web3?

    This round of funding bets on the transition of cryptocurrency from the infrastructure development phase to the phase of real user adoption. Whether focusing on cryptocurrency or crossing over to AI, this real money will only flow to those places that can turn technology into products.
    ZROZRO
    00.00%--
    SOLSOL
    00.00%--
    UNIUNI
    00.00%--
    2026/05/04

    The billion-dollar lesson: The focus of DeFi security is shifting from code to operational governance

    Warning of nearly $1 billion loss in DeFi: Security pain points have shifted from code vulnerabilities to permissions and operations. Introducing TradFi bank-level risk control and AI defenses is the way to balance openness and security.
    ZROZRO
    00.00%--
    AAVEAAVE
    00.00%--
    2026/04/30

    Morning Report | Visa includes Polygon in its global stablecoin settlement program; MoonPay invests $100 million to acquire security company Sodot; Digital wallet platform Belo completes $14 million Series A financing

    Overview of Important Market Events on April 29
    ZROZRO
    00.00%--
    EIGENEIGEN
    00.00%--
    ETHETH
    00.00%--
    SOLSOL
    00.00%--
    ARBARB
    00.00%--
    2026/04/26

    How to balance risk and return in DeFi yields?

    Have these yields ever been reasonable? Have we ever received the compensation we deserve for the risks taken in DeFi, and where should the future spreads be set?
    ZROZRO
    00.00%--
    AAVEAAVE
    00.00%--
    SOLSOL
    00.00%--
    USDCUSDC
    00.00%--
    More

    Latest coin listings on WEEX

    logoCommunity
    iconiconiconiconiconiconicon
    Customer Support:@weikecs
    Business Cooperation:@weikecs
    Quant Trading & MM:bd@weex.com
    VIP Program:support@weex.com
    • About Us
    • Announcement Center
    • Media Kit
    • WEEX Community
    • WXT Zone
    • Announcement
    • Legal Statement
    • Risk Disclosure
    • Terms and Policies
    • Privacy Policy
    • Whistleblower Notice
    • AML/CTF Policy
    • Law Enforcement
    • User Guide
    • Product Launches
    • Crypto News
    • Product Launches
    • Crypto Wiki
    • Learn
    • Q&A
    • Spot
    • Futures
    • Glossary
    • VIP Program
    • Download
    • Affiliate
    • Protection Fund
    • Proof of Reserves
    • Sitemap
    • ETFs
    • Crypto Prices
    • Price Predictions
    • WXT Price
    • BTC Price
    • ETH Price
    • DOGE Price
    • How to Buy Crypto
    • How to Buy WXT
    • How to Buy BTC
    • How to Buy ETH
    • How to Buy DOGE
    • Help Center
    • Fee Schedule
    • Trading Rules
    • WEEX Academy
    • Contact Verifier
    • Submit Feedback
    • About Us
    • Announcement Center
    • Media Kit
    • WEEX Community
    • WXT Zone
    • Announcement
    • Help Center
    • Fee Schedule
    • Trading Rules
    • WEEX Academy
    • Contact Verifier
    • Submit Feedback
    • Customer Support Bot
    • VIP Services
    • Legal Statement
    • Risk Disclosure
    • Terms and Policies
    • Privacy Policy
    • Whistleblower Notice
    • AML/CTF Policy
    • Law Enforcement
    • Proof of Reserves
    • Invite Friends
    • OTC
    • Download
    • Affiliate
    • VIP Program
    • API
    • Broker
    • Listing Application
    • Affiliate T&C
    • Sitemap
    • Futures
    • Spot
    • Copy Trade
    • Markets
    • WEEX Store
    • User Guide
    • Product Launches
    • Crypto News
    • Product Launches
    • Crypto Wiki
    • Learn
    • Q&A
    • Spot
    • Futures
    • Glossary
    • VIP Program
    • Download
    • Affiliate
    • Protection Fund
    • Proof of Reserves
    • Sitemap
    • ETFs
    • Crypto Prices
    • Price Predictions
    • WXT Price
    • BTC Price
    • ETH Price
    • DOGE Price
    • How to Buy Crypto
    • How to Buy WXT
    • How to Buy BTC
    • How to Buy ETH
    • How to Buy DOGE
    • About Us
    • Announcement Center
    • Media Kit
    • WEEX Community
    • WXT Zone
    • Announcement
    • Help Center
    • Fee Schedule
    • Trading Rules
    • WEEX Academy
    • Contact Verifier
    • Submit Feedback
    • Legal Statement
    • Risk Disclosure
    • Terms and Policies
    • Privacy Policy
    • Whistleblower Notice
    • AML/CTF Policy
    • Law Enforcement
    • Customer Support Bot
    • VIP Services
    • Futures
    • Spot
    • Copy Trade
    • Markets
    • WEEX Store
    • Proof of Reserves
    • Invite Friends
    • OTC
    • Download
    • Affiliate
    • VIP Program
    • API
    • Broker
    • Listing Application
    • Affiliate T&C
    • Sitemap
    • User Guide
    • Product Launches
    • Crypto News
    • Product Launches
    • Crypto Wiki
    • Learn
    • Q&A
    • Spot
    • Futures
    • Glossary
    • VIP Program
    • Download
    • Affiliate
    • Protection Fund
    • Proof of Reserves
    • Sitemap
    • ETFs
    • Crypto Prices
    • Price Predictions
    • WXT Price
    • BTC Price
    • ETH Price
    • DOGE Price
    • How to Buy Crypto
    • How to Buy WXT
    • How to Buy BTC
    • How to Buy ETH
    • How to Buy DOGE

    Where new wealth is made

    Download app

    Sign Up
    h5 logo
    Download