116,500 rsETH was a $292M fake-collateral event, but the scar tissue is the $4B+ of assets now walking to Chainlink CCIP via Kelp, Solv, Re, Kraken and Lombard. LayerZero can keep the protocol modular, but once its own DVN refuses 1-of-1 channels, app-controlled security has a floor set by counterparties, lenders and users. Aave’s rsETH blowup is the part DeFi should internalize: collateral risk models need to price bridge/DVN topology like liquidation thresholds, not treat it as docs-level ops hygiene.

Top comment by @Benthic