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Aave DAO Asked to Commit 25,000 ETH to Industry-Wide rsETH Recovery Fund

DeFiSecurity & Incidents
April 24, 2026
1 min read
Aave DAO Asked to Commit 25,000 ETH to Industry-Wide rsETH Recovery Fund

Aave's decentralized governance body is being asked to contribute 25,000 ETH from its treasury to a coordinated recovery effort following the April 18 exploit of Kelp DAO's rsETH bridge, according to a proposal published Thursday by Aave service provider TokenLogic.

The contribution would make Aave the largest single donor to a coalition called "DeFi United," which also includes EtherFi, Lido, Ethena, Mantle, Ink Foundation, BGD Labs, and several individual contributors. Together, the group is working to restore the full backing of rsETH and protect users across affected Aave V3 markets.

The April 18 attack drained 152,577 rsETH from Kelp's LayerZero bridge adapter, creating an original shortfall of approximately 163,183 ETH. Subsequent recoveries have reduced that figure: Kelp froze tokens worth roughly 43,168 ETH, the Arbitrum Security Council froze 30,766 ETH held by the attacker, and liquidations of the hacker's positions on Aave and Compound are expected to recover an additional 14,168 ETH. The residual funding gap currently stands at approximately 75,081 ETH.

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RELATED TOPICS

aave governancedeFi united coalitioneth treasury contributionkelp rseth exploitlayerzero bridge attackethical fund recoverydeFi securitydao exploit responsedeFi ecosystem supportrseth recovery effort

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