Compound Joins DeFi United, Proposes 3,000 ETH to Recover 16,776 ETH in Exploiter Positions

Compound Joins DeFi United, Proposes 3,000 ETH to Recover 16,776 ETH in Exploiter Positions

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News Editor 01
2026-07-23 04:45:14
Compound proposes contributing 1,900–3,000 ETH to DeFi United's rsETH recovery effort, targeting 16,776 ETH stolen in the April 18 exploit. The coalition of 14 protocols has already secured over $161 million in commitments.
CompoundDeFi UnitedrsETH recoveryEthereumgovernance proposal

On April 28, Compound submitted a governance proposal to join the DeFi United coalition, pledging between 1,900 and 3,000 ETH (worth up to $6.9 million) to help recover approximately 16,776 ETH lost in the April 18 exploit. The move adds to an unprecedented cross-protocol effort: 14 protocols have now committed over $161 million in ETH and credit lines.

Conditions Tied to the Compound Proposal

The proposal sets strict conditions for releasing funds: full restoration of rsETH collateral, equal treatment of all affected parties, and a clear, transparent execution plan with regular governance updates. Roughly 1,857 ETH of the total commitment is contingent on successfully recovering the attacker's active position. The DAO retains the ability to scale back or withdraw support if conditions are not met. The final contribution within the 1,900–3,000 ETH range will be determined by the Compound Governance Working Group alongside Gauntlet, security service providers, and the Compound Foundation.

The exploit hit both Aave and Compound. DeFi United aims to recover 13,000 ETH from Aave positions and 16,776 ETH from Compound positions, with both recovery tracks running in parallel. The proposal notes that funds will be allocated strictly per protocol-specific progress.

Coalition Backing: Consensys Leads with 30,000 ETH

Consensys and Ethereum co-founder Joe Lubin committed 30,000 ETH to the initiative, providing immediate liquidity so that governance processes are not forced into rushed decisions. Lubin said: "DeFi United is exactly that, a broad, coordinated response to protect users and strengthen the infrastructure."

Aave contributed 25,000 ETH, with founder Stani Kulechov adding a personal commitment of 5,000 ETH. Mantle provided a 30,000 ETH credit facility, while Lido committed up to 2,500 stETH. The Avalanche Foundation, also backing the effort, framed the moment as a public stress-test "with transparent books and real accountability."

Not all commitments are instantly available cash; some are credit lines or liquidity pool allocations that require separate governance votes to be activated. The Compound proposal is exactly that — the DAO must first give in-principle approval via the forum, after which a working group executes the transfer.

Governance votes are still pending across several participating protocols. The DeFi United coalition calls this one of the largest coordinated recovery efforts in DeFi history. Its success will depend on whether each community can reach consensus under transparent, accountable terms.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.
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