Decentralized finance is witnessing an unprecedented collaborative rescue operation. Following the $293 million exploit of Kelp DAO, Aave has led a 'DeFi United' relief effort, securing commitments exceeding $101 million (43,500 ETH) to restore backing for the affected asset rsETH. 'Ecosystem collaboration matters most in moments like this,' Aave stated, emphasizing the goal of achieving the strongest possible outcome for users.
Major Commitments and Multi-Protocol Support
Among the largest contributors, Mantle proposed lending up to 30,000 ETH to the Aave DAO in exchange for yield, while EtherFi Foundation committed 5,000 ETH. The Golem Foundation and Golem Factory jointly offered 1,000 ETH, and Lido DAO conditionally pledged 2,500 stETH through a dedicated vehicle. Additional backing has been signaled by LayerZero, Ink Foundation, Tyrdo, and Frax Finance, with exact amounts undisclosed. Aave founder Stani Kulechov personally pledged 5,000 ETH, noting further commitments are being finalized with partners.
Aftermath and Freeze Measures
On April 18, attackers drained 116,500 rsETH from Kelp DAO's LayerZero-based bridge, using them as collateral on Aave v3 to borrow wrapped Ether, leaving roughly $195 million in bad debt. To contain damage, Aave paused rsETH reserves across Ethereum, Arbitrum, Base, Mantle, and Linea. Arbitrum's security council froze 30,766 ETH tied to the exploit, but blockchain analysts indicate that approximately 75,700 ETH linked to the attack has already been laundered, limiting immediate recovery prospects. The effort now hinges on whether combined pledges can fully close the deficit left by one of the largest recent exploits in the restaking sector.