Aave has taken a central role in the recovery effort following the Kelp DAO attack, with governance proposals setting aside up to 250,000 ETH for a rescue fund. Aave founder Stani Kulechov separately pledged 5,000 ETH of his own, while Aave contributor Emilio Frangella and BGD Labs members Ernesto Boado and Marcelo Ruiz de Orlano are preparing additional ETH contributions of varying size.
The attack also created knock-on risks across rsETH markets, which is why the recovery plan was structured to do more than reimburse direct losses. It is also meant to stabilize market conditions. The scope is broad, and the response is still developing.
Governance proposals target rsETH losses
Aave Labs has also proposed releasing about 30,765.67 ETH controlled by the Security Council on Arbitrum to cover losses suffered by rsETH holders. That said, a large share of the pledged support still depends on governance approval, so the final amount available for deployment has not yet been locked in.
The support structure is notable for its mix of funding models. Some participants have offered direct grants, others are extending credit lines, and several are choosing to make deposits into the protocol. That split shows an effort to balance urgency with risk controls.
Consensys, Lido, EtherFi and Compound join in
Support widened quickly after Aave began coordinating outreach. According to the report, Stani Kulechov opened direct discussions with major industry players including Consensys. Consensys and its founder Joseph Lubin said they were ready to provide 30,000 ETH in aid, while Sharplink took an active advisory role during the process.
Other protocols also outlined contributions. Lido proposed allocating 2,500 stETH to the recovery. EtherFi is discussing a plan to back affected users with 5,000 ETH. Mantle’s proposal includes a 30,000 ETH credit line, and Compound suggested contributing 3,000 ETH to the fund.
“DeFi United represents exactly the broad and coordinated response needed to protect users and strengthen the infrastructure we have built. We are pleased to stand alongside other ecosystem stakeholders in contributing to this effort.”
Recovery backing extends beyond ETH
The rescue package is not limited to ETH-based support. The Babylon Foundation plans to deposit $3 million worth of USDT into the Aave protocol, while Renzo has committed more than $10 million from its treasury. Circle Ventures entered the process by purchasing AAVE tokens.
Additional support has also come from Avalanche, the Solana Foundation, Justin Sun and several crypto startups. As more participants enter the initiative, the wider effect of the incident on DeFi has become clearer. The process remains ongoing, and the size of the recovery pool may still change as approvals and new commitments come in.