Compound has proposed joining Defi United’s coordinated rsETH recovery initiative with a contribution ranging from 1,900 ETH to 3,000 ETH, valued at up to $6.9 million according to the proposal details. The plan was submitted to Compound’s governance forum on April 28 and still requires community approval before any final commitment is made.
The proposal places Compound among the latest participants in one of the largest coordinated recovery efforts seen in decentralized finance. Defi United said that 14 protocols have now committed more than $161 million in ETH-related support to help restore rsETH backing after the exploit that occurred on April 18.
Recovery plan targets exploiter positions on Compound and Aave
According to the technical implementation plan referenced in the proposal, the initiative is aiming to recover approximately 16,776 ETH from exploiter-linked positions on Compound. That effort is expected to run in parallel with a separate recovery of roughly 13,000 ETH from positions on Aave.
The broader objective is to rebuild the collateral foundation behind rsETH while avoiding rushed and fragmented actions across protocols. By coordinating governance, liquidity commitments, and technical recovery steps, the coalition is trying to stabilize conditions for affected users and ensure that any remediation process is carried out in a structured way.
Compound ties funding to clear conditions
Compound’s proposal does not offer unconditional support. It explicitly states that any release of funds should depend on several requirements being met. These include the full restoration of rsETH collateral, equal treatment of all affected parties, and a clear and transparent execution plan supported by regular governance updates.
The proposal also notes that about 1,857 ETH of the total commitment would be contingent on the successful recovery of the attacker’s active position. If those standards are not met, the DAO would retain the right to reduce or withdraw support. That language suggests Compound wants to balance industry solidarity with strong governance controls and accountability.
The final amount, if approved in principle by the community, would be determined within the proposed range by the Compound Governance Working Group in coordination with Gauntlet, security service providers, and the Compound Foundation.
A cross-protocol response on an unusual scale
Compound’s planned participation adds to a coalition already backed by some of the biggest names in Ethereum-based DeFi. Consensys and Ethereum co-founder Joe Lubin have committed 30,000 ETH to the effort, a move described as providing immediate liquidity support for governance processes without forcing protocols into rushed decisions.
Aave has pledged 25,000 ETH, while Aave founder Stani Kulechov has added a personal commitment of 5,000 ETH. Mantle has offered a 30,000 ETH credit facility, and Lido has committed up to 2,500 stETH. Together, these commitments underline the scale of the industry’s response and show how multiple protocols are attempting to coordinate rather than act independently.
Lubin described Defi United as “a broad, coordinated response to protect users,” framing the initiative not just as an emergency funding operation but as a collaborative effort to reinforce ecosystem infrastructure. The Avalanche Foundation, which is also backing the initiative, portrayed the episode as a public stress test for DeFi—one taking place with transparent books and visible accountability.
Governance remains central to the next phase
Despite the large headline commitments, several contributions across the coalition remain subject to governance approval. That means the actual deployment of capital will depend on each protocol’s internal process, including votes, implementation reviews, and legal or operational checks where relevant.
For Compound, the proposal illustrates how DeFi governance can be used not only for protocol-level risk management but also for ecosystem-wide crisis coordination. The measure seeks to align financial support with recoverability, transparency, and user protection rather than treating the bailout as automatic.
If the plan advances, Compound would become part of a multi-protocol effort designed to restore confidence in rsETH and show that decentralized systems can coordinate a large-scale response after a major exploit. Whether that model becomes a template for future incidents may depend on how effectively Defi United converts pledged capital into actual recoveries and fair outcomes for affected users.