LayerZero Labs has pledged 10,000 ETH to the DeFi United recovery effort following the $292 million Kelp DAO exploit on April 18, 2026. The firm disclosed the commitment via an X post on Tuesday, aiming to restore rsETH backing and stabilize affected lending markets.
Fund Allocation: 5,000 ETH Donated, 5,000 ETH to Aave
LayerZero will donate 5,000 ETH to DeFi United and deposit another 5,000 ETH directly into Aave to bolster liquidity. The company also plans to deepen liquidity for Aave's native stablecoin, GHO. At current prices, the total contribution is worth roughly $23 million.
Exploit Recap: RPC Poisoning Unleashed 107,000 Unbacked rsETH
On April 18, attackers used an RPC poisoning method to forge a cross-chain message, releasing unbacked rsETH from Kelp DAO's Ethereum bridge. Approximately 107,000 rsETH entered Aave lending positions; the attacker later deposited 90,000 rsETH and borrowed nearly $190 million in assets, creating major bad debt across DeFi protocols and straining liquidity.
DeFi United Raises Over $300 Million; Major Players Join
Coordination led by Aave, DeFi United has raised over $300 million in ETH and stablecoins from multiple participants. Contributors include Consensys and Joseph Lubin (30,000 ETH each), Mantle (matching via low-interest loan), Stani Kulechov (5,000 ETH), and KelpDAO (2,000 ETH).
Design Controversy: Single-Verifier Setup Under Fire
LayerZero stated it had recommended a multi-verifier redundancy approach, but Kelp DAO implemented a single-verifier configuration—a weakness the exploit targeted. Scrutiny over Kelp's verifier design continues to mount.
LayerZero said it will keep working with Aave and other DeFi participants on integration standards, particularly around omnichain fungible tokens within lending markets.