LayerZero Issues Public Apology Acknowledging Security Breach
- Security Breach Admission: On May 8, 2026, LayerZero publicly apologized for inadequate communication following the Kelp DAO exploit, acknowledging that a single-verifier setup flaw was central to the approximately $290 million breach, highlighting significant design oversights.
- Widespread Attack Impact: The exploit resulted in the loss of around 116,500 rsETH from KelpDAO's bridge infrastructure, with Galaxy Research reporting a $15 billion drop in total value locked in DeFi, underscoring the interconnectedness of DeFi protocols.
- Migration to Competitors: KelpDAO has decided to migrate its rsETH cross-chain system to Chainlink CCIP, completely abandoning LayerZero's infrastructure, reflecting a severe lack of trust in its security, which may lead to customer attrition for LayerZero.
- Complex Legal Consequences: LayerZero is cooperating with multiple law enforcement agencies to investigate the incident, and the involvement of a $71 million frozen Arbitrum-linked funds case adds uncertainty for affected users, illustrating the vulnerabilities within DeFi infrastructure.
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Technical Analysis for DEFI
Technical Sentiment Analysis for DeFi (DEFI). As of , DeFi (DEFI) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 7 technical signals, shows that 2 indicators are flashing buy, while 5 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for DEFI stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.
Support, Resistance & Moving Averages. From a structural perspective, DEFI is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
DeFi (DEFI) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 0.000183 | 0.000206 | 0.000221 | 0.000244 | 0.000259 | 0.000283 | 0.000297 |
| Fibonacci | 0.000206 | 0.000221 | 0.00023 | 0.000244 | 0.000259 | 0.000268 | 0.000283 |
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