KelpDAO chips in 2,000 ETH to DeFi United’s rsETH recovery effort
KelpDAO announced on April 30 that it has delivered on a pledge to support the DeFi United recovery plan by contributing 2,000 ETH from its treasury to help restore rsETH’s peg following the April 18 exploit. The protocol framed the one-time contribution as a concrete expression of its earlier commitment that “rsETH holders will not be abandoned.”
The emergency coalition DeFi United — led by Aave and joined by projects including Mantle, Consensys, Arbitrum, Lido Finance, and LayerZero — has put together a multi-pronged recovery roadmap. Key elements include recapitalizing the bridging treasury, restoring oracle functionality, and plugging funding gaps across affected markets so rsETH can return to normal operation.
So far the coalition has tentatively raised more than $302 million from DAOs and industry participants. Major contributions and actions reported to date:
- Consensys and Joseph Lubin: 30,000 ETH (≈ $69M)
- Mantle: 30,000 ETH provided as a low-interest loan
- Aave DAO: pending governance vote for 25,000 ETH (≈ $57.5M)
- LayerZero: 10,000 ETH (≈ $23M)
- Arbitrum Security Council: froze 30,766 ETH (≈ $71M) seized from attacker wallets, pending a governance decision
The April 18 exploit drained 116,500 rsETH — about $290–293 million and roughly 18% of rsETH’s supply — from KelpDAO’s LayerZero-powered bridge. The attacker posted those tokens as collateral across Aave, Compound v3, and Euler and extracted an estimated $236 million in borrowed ETH and WETH, leaving significant bad debt on those platforms.
KelpDAO said its 2,000 ETH injection is intended to accelerate repairs by adding immediate collateral support while broader funds and governance actions are coordinated. As incoming contributions are applied and oracle/bridge systems are restored, the coalition expects rsETH collateralization and peg support to normalize.
KelpDAO concluded that it will keep the community updated as the recovery progresses, reiterating the priority of restoring market stability and protecting rsETH holders.
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