A $290 million exploit on Kelp DAO has exposed critical security gaps in its oracle and bridge infrastructure. In response, two DeFi protocols — Solv and Tydro — are moving their oracle services to Chainlink.
What the exploit revealed
The attack hit Kelp DAO's cross-chain operations, targeting the systems that feed price data and link blockchains. Investigators found that both the oracle and the bridge were vulnerable, allowing the attacker to drain funds. The breach ranks among the largest in DeFi this year and has rattled confidence in protocols that rely on custom or less-audited oracle setups.
Why Solv and Tydro switched
Solv and Tydro announced they will adopt Chainlink's oracle network, citing the Kelp incident as a direct catalyst. Chainlink's infrastructure is widely used in DeFi and is regularly audited. The two protocols said the migration is meant to reduce the risk of similar exploits. They did not provide a timeline for completion, but the move signals a shift toward standardized security layers after the Kelp failure.
The Kelp DAO hack underscores how a single weak point — whether in a price feed or a bridge — can bring down an entire platform. For smaller protocols, the cost of building and maintaining custom oracle systems may no longer outweigh the safety of established providers like Chainlink.
The exploit also puts pressure on Kelp DAO to disclose its full post-mortem and any corrective measures. So far, the project has not detailed whether it will upgrade its own oracle and bridge infrastructure. Solv and Tydro's decision suggests that the market is already voting with its feet.
