Morpho co-founder: Exposure to rsETH is extremely limited, with approximately 1 million USD worth of ETH borrowed using rsETH as collateral
Foresight News reports that Morpho co-founder and CEO Paul Frambot posted on Twitter regarding the Kelp DAO attack, stating that Morpho smart contracts are secure and operating normally. Out of thousands of isolated markets, only two markets involve rsETH-collateralized lending, totaling about 1 million USD in ETH; among over 500 Morpho Vaults, only two have exposure to these markets. Thanks to the fully isolated market design, all other Vaults remain unaffected, though second-order effects due to the broader ecosystem exposure cannot be ruled out. Meanwhile, Morpho announced the preemptive suspension of MORPHO token transfers via the OFT cross-chain bridge on Arbitrum, which will only resume once the root cause of the rsETH incident is identified.
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