ETH Developer Warns: Ethereum Needs Validity Proofs to Stay Competitive

Following a $293 million KelpDAO bridge exploit that stole about 116,500 rsETH, Ethereum developer Barnabé Monnot warned that the hacks highlight the need for validity proofs and faster finality to keep Ethereum competitive. The attack — the largest DeFi exploit of 2026 — impacted cross-chain infrastructure, restaking models and lending markets, and follows other major drains such as the Solana-based Drift $285 million heist. Monnot argues Ethereum should become not just a transport layer but an issuer-of-record, prioritizing validity proofs, reduced latency and improved UX. The comments could increase scrutiny on restaking tokens, bridges and cross-chain risk, potentially weighing on investor confidence in related DeFi primitives while accelerating protocol work on security and finality improvements.