XRP News: wXRP Has ‘Zero Exposure’ to Kelp DAO Hack, Hex Trust Confirms

In a major XRP news, Hex Trust, the issuer of the wrapped XRP (wXRP) token, has confirmed that the wrapped token has zero exposure to the $292 million Kelp DAO exploit that occurred over the weekend. This follows an earlier warning that wXRP on Solana could face a similar risk as DeFi concerns mount.

XRP News Today: Hex Trust Confirms wXRP Is Safe

In an X post, Hex Trust said that wXRP has zero exposure to the Kelp DAO exploit and that user funds were never at risk. This relates to the wXRP on the Ethereum network, as the hacker drained rsETH through Kelp DAO’s LayerZero-powered cross-chain bridge.

As CoinGape reported, LayerZero blamed Kelp DAO’s single-DVN configuration for the rsETH exploit. It noted that Kelp DAO chose to use a single decentralized verifier network (DVN) configuration, which is why the exploit succeeded.

Meanwhile, Hex Trust noted that two of their four multi-DVN setups mean no single verifier can approve a transaction on their own. Furthermore, the firm assured that none of their DVNs were compromised and that they do not use the exploited DVN in the Kelp DAO hack for wXRP.

Hex Trust also revealed that it holds the underlying XRP in its regulated custody and not on the bridge. However, they paused the bridge as a precaution and are now reviewing the configuration following the hack to the liquid staking protocol Kelp DAO.

The firm added that every wXRP remains 1:1 backed. It is worth noting that there are currently 50 million wXRP tokens in circulation on the Ethereum network. Meanwhile, Hex Trust only recently expanded the wrapped token to the Solana network.

wXRP Solana Already Close To The One Million Mark

According to data from Hex Trust, the circulating supply of wXRP on Solana has nearly reached the 1 million mark in less than a week since the token’s launch. The token notably launched on several Solana-powered applications, including Phantom, Jupiter Exchange, Meteora, and Byreal.

Meanwhile, following the Kelp DAO exploit, XRP Ledger validator Vet warned of the risk of holding these wrapped tokens on networks like Solana or Ethereum rather than simply holding the native XRP. This came as he noted that issued tokens, such as wXRP, have real counterparty risk.

The Kelp DAO hack has once again raised concerns about DeFi security, especially given that it occurred less than a month after the Drift exploit. Notably, former Ripple CTO David Schwartz expressed concerns about integrating DeFi bridge infrastructure to support RLUSD following the Kelp DAO incident.