One week after KelpDAO’s cross-chain bridge was drained for $292 million by the Lazarus hacker group, DeFi protocols have shifted from finger-pointing to pooling funds. TokenLogic submitted an ARFC proposal on April 24 recommending that the Aave DAO allocate 25,000 ETH from its treasury to join “DeFi United,” a multi-protocol rescue effort — the largest cross-protocol capital mobilization since the rsETH incident.
The 120,000 ETH Puzzle
KelpDAO’s April 18 exploit left a funding gap of roughly 163,183 ETH. Attackers infiltrated LayerZero’s cross-chain bridge RPC node, forged non-existent cross-chain transactions, and minted about 150,000 unbacked rsETH, siphoning liquidity from Aave. Over the past week, recovery efforts reclaimed about 87,955 ETH (54%), including 43,168 ETH frozen by Kelp, 30,766 ETH frozen by Arbitrum’s Security Council, and 14,168 WETH recovered through liquidations of the attacker’s positions on Aave and Compound.
The remaining gap stands at 75,081 ETH — the target of DeFi United. Pledged commitments so far: Aave DAO (25,000 ETH), Mantle (30,000 ETH credit line), Aave founder Stani Kulechov personally pledging 5,000 ETH, Lido (2,500 stETH worth ~$5.7 million), plus ~14,570 ETH from EtherFi, Ethena, Ink Foundation, BGD Labs and others. Combined with recovered funds, total liquidity nears 157,000 ETH, theoretically enough to cover the original hole. Protocols that usually compete are willing to chip in because the rsETH shortfall isn’t just Kelp’s problem — bad debt on Aave hits all depositors.
Mantle’s 30,000 ETH Comes with a Price
Mantle’s 30,000 ETH loan is the single largest commitment, but it carries tough conditions. Beyond a LIDO+1% annualized interest rate and a maximum 36-month repayment period, Aave must transfer 130,000 AAVE tokens in governance delegation rights. In plain terms, an L2 network gains voting power in DeFi’s largest lending protocol. Mantle’s own proposal text doesn’t mince words: “We turn another’s crisis into a strategic financial and partnership win” — a textbook case of extracting favors from a rescue.
The proposal is now in the community feedback stage. If consensuses forms, it will move to a Snapshot vote and eventually an AIP for execution. Not all feedback is supportive — some members argue Aave bears a disproportionate burden, and others point out that listing rsETH at a 93% LTV was itself a risk management failure. Whether the 25,000 ETH is a “donation” or a “bailout loan” remains ambiguous: the proposal calls it a voluntary donation but authorizes a revenue-sharing repayment mechanism.