US EditionA Crypto Coalition Releases Technical Proposal to Save Aave Users From a Massive Token Exploit
The coalition said more than $300 million in pledges and recoveries will restore rsETH backing and unwind the attacker’s positions.
- On Tuesday, the multi-protocol coalition DeFi United published a technical recovery plan to restore rsETH backing and unwind the attacker's residual positions across Aave and Compound.
- The April 18 exploit, attributed with preliminary confidence to North Korea's Lazarus Group, forged a bridge message to mint 116,500 unbacked rsETH worth $292 million, triggering a $10 billion TVL decline.
- Governance-Approved liquidations will recover 13,000 ETH from Aave and roughly 16,776 ETH from Compound, while ecosystem pledges have surpassed $300 million from contributors like Consensys and Joe Lubin.
- The Arbitrum Security Council previously froze 30,766 ETH worth roughly $71 million; Aave, Kelp, and LayerZero now propose releasing these funds into the recovery effort via governance.
- Staged ETH deposits will restore the rsETH peg while validating new security measures implemented by LayerZero and Kelp in a live production environment before committing full balances.
16 Articles
16 Articles
A crypto coalition releases technical proposal to save Aave users from a massive token exploit
DeFi United, a coalition of multiple blockchain projects and crypto ecosystem individuals, has laid out a detailed plan to restore the backing of rsETH after this month’s Kelp DAO hack sent shockwaves through lending markets.
DeFi United Releases Technical Plan to Restore rsETH Backing After $292 Million Kelp DAO Exploit
DeFi United, the multi-protocol coalition assembled after the April 18 Kelp DAO bridge exploit, has published a detailed technical recovery plan to restore full backing for rsETH and unwind the attacker’s residual positions across Aave and Compound. The plan operates on two tracks. Committed ETH from ecosystem contributors will be converted into rsETH in staged tranches and deposited into Kelp DAO’s bridge lockbox contract — identified as the RS…
The stability of rsETH, one of the assets derived from liquid stacking within the DeFi ecosystem, enters a critical recovery phase after the exploit to Kelp DAO in mid-April that pledged its support. The DeFi United coalition has presented a detailed technical plan to fully restore asset parity, in a coordinated effort involving multiple protocols and more than $300 million in capital commitments. The movement marks one of the largest coordinate…
DeFi United Outlines Technical Path To Make Kelp's rsETH Whole
DeFi United, a coalition of decentralized finance (DeFi) ecosystem participants, on Tuesday published the technical implementation plan to restore the backing of Kelp DAO's rsETH and recover roughly 107,000 tokens still controlled by the exploiter.The exploit targeted rsETH's LayerZero-powered bridge on the Unichain to Ethereum route, where a forged inbound packet was verified on the Ethereum side without a corresponding burn on Unichain. The at…
What to remember: DeFi United unveils a technical plan to repair the Kelp DAO exploit that released 116,500 rsETH without guarantee on 18 April. 107,000 compromised rsETH remain active on Aave and Compound as collateral of non-legitimate loans. The coalition claims to have secured enough of the ETH to re-collateralize fully rsETH and dismantle fraudulent positions. 116,500 tokens created without guarantee paralyze DeFi markets On 18 April, an at…
Aave Outlines Steps to Rebuild rsETH Collateral
Aave has announced a recovery plan following an April 18 exploit that affected its liquidity markets and collateral positions on several chains. The update explains how DeFi United, a group of ecosystem participants, intends to restore the backing of rsETH and bring affected markets back to normal. Recovery Process The issue started when an attacker exploited a vulnerability in rsETH’s bridge from Unichain to Ethereum, causing a fake transaction…
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