Dialectic: DETH Not Affected by Kelp DAO Attack

Foresight News reports that crypto asset management firm Dialectic has released an update regarding its Dialectic Machines (DUSD, DETH, and DBIT) on the Makina platform in response to the recent KelpDAO attack. Dialectic stated that none of its products have direct exposure to rsETH risk. Although DETH maintains a position in the Aave Umbrella WETH vault, current analysis shows that the attack primarily involves rsETH OFT collateral on L2, rather than Ethereum mainnet positions. Since Aave Umbrella's automatic compensation mechanism only triggers slashing for losses on its deployed chain, losses on L2 cannot be covered by the WETH Umbrella on L1. Therefore, their assessment is that DETH will not be affected by this attack. As a precaution, Dialectic has initiated a redemption for this position, and it is now in a 20-day cooling-off period.