The crypto industry experienced a significant setback when the Kelp protocol was hacked on April 18, 2026, leading to a loss of approximately $293 million. The hackers exploited the LayerZero bridge, minting 116,500 rsETH without backing and subsequently used it as collateral to borrow around $195 million from Aave, a leading decentralized finance (DeFi) lending protocol. This incident triggered a wave of panic withdrawals, causing Aave's total value locked (TVL) to plummet from $26.39 billion to $16.53 billion. In response, Sergej Kunz, co-founder of 1inch, criticized the shared-pool model used by Aave, stating that it socializes risk across all participants, exposing even those who lend stable assets to potential losses. He proposed an intent-centric model that would allow users to specify their collateral and loan terms, thereby containing risks to those who accept exposure. Kunz emphasized that users should avoid lending platforms with weak risk management and admin key vulnerabilities to safeguard their investments.