Morpho CEO: KelpDAO Incident Has Limited Impact on the Platform, But Second-Order Effects May Exist

BlockBeats News, April 19th, Morpho Co-Founder and CEO Paul Frambot stated in a post regarding the recent KelpDAO incident:

· Morpho smart contract security is still operating as expected;

· The exposure is limited, and the curator has taken preventive measures promptly;

· Only about $1 million worth of ETH is borrowed against rsETH, distributed across two isolated markets;

· Out of around 500 Morpho Vaults (with deposits over $10,000), only 2 are involved in these markets, with the final impact depending on the development of the situation;

· Due to Morpho's use of fully isolated market design, all other Vaults remain unaffected.

While the direct impact on Morpho is limited, secondary effects may still exist due to the overall ecosystem exposure. Please remain cautious."