Morpho CEO: KelpDAO Incident Leaves Protocol Largely Unaffected

BlockBeats reported on April 19 that Morpho cofounder and CEO Paul Frambot issued a statement on the recent KelpDAO incident. Frambot said Morpho's smart contracts remain secure and are functioning normally. He added that Morpho's direct exposure is limited and that the relevant curator implemented precautionary measures immediately. According to the post, roughly $1 million worth of ETH has been borrowed using rsETH as collateral, spread across two isolated markets out of thousands on Morpho. Among about 500 Morpho Vaults with deposits above $10,000, only two have exposure to these markets. Frambot noted that the ultimate impact will depend on how the situation develops. He emphasized that Morpho's fully isolated market architecture prevents spillover to other vaults. Still, he warned that secondary effects could emerge through broader ecosystem exposure and urged users to remain cautious.