Temporary cap reductions for ARKs having KelpDAO's rsETH exposure

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As a precautionary measure, BA-Labs is setting caps to 0 for all the ARKs having >1% max potential exposure to KelpDAO’s rsETH token (list of ARKs is available below) due to an infinite mint glitch that allowed the issuance of 16,949,769,554,642,466.836005513427811988 rsETH.

Kelp team released a technical update assuring the mint glitch would not result in excess secondary issuance of insolvent rsETH, and that excess rsETH can to be minted to the fee address only.

fleet ark arkSymbol arkMaxCap arkMaxPercOfTVL collateral chain currentTVL currentFleetExposureToArk maxFleetExposureToArk currentFleetExposureToAsset maxFleetExposureToAsset
fleet_base_EURC moonwell EURC 1,260,000 58.00% wrsETH base 0 0.00% 58.00% 0.00% 1.23%
fleet_base_ETH morpho morpho_gauntlet_weth_core 370 37.00% wrsETH base 370 17.80% 17.81% 9.75% 9.76%
fleet_base_ETH compound_v3 WETH 1,280 43.00% wrsETH base 0 0.00% 43.00% 0.00% 1.53%
fleet_ethereum_USDC euler euler_prime_usdc 7,400,000 32.00% rsETH ethereum 6,455,049 33.13% 32.00% 3.85% 3.72%
fleet_ethereum_ETH compound_v3 WETH 14,000 41.00% rsETH ethereum 0 0.00% 41.00% 0.00% 9.29%
fleet_ethereum_ETH euler euler_prime_weth 5,000 35.00% rsETH ethereum 4,939 37.07% 35.00% 5.41% 5.11%

We plan to set the caps to their previous values if/when KelpDAO confirms the issue is fixed and no losses were inccured, and will let the SummerFi community here know when we do, in the form of a reply to this thread.

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Really appreciate the proactive move by @BlockAnalitica here—zeroing caps on any ARKs with >1% rsETH exposure is a smart precaution given the scale of that mint glitch.

Safety first, and looking forward to re-enabling these strategies once we’ve got full assurance.

—jensei

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After the statement of resolving the issue, KelpDAO announced ~1.5h ago that all operations are now back to normal, including the unpausing deposits and withdrawals of rsETH.

BA-Labs has acted accordingly, as mentioned above, and reverted the caps of impacted ARKs to their previous on Mainnet and Base, at it can be confired here and here.

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