Aave Moves to Restore rsETH Following Kelp DAO Exploit
- Aave Labs has liquidated the remaining rsETH positions of the Kelp DAO attacker on Ethereum and Arbitrum.
- The liquidation is part of a recovery plan called “DeFi United,” aimed at compensating affected users from a $293 million exploit.
- DeFi United is approximately 10% short of the Ether (ETH) needed to fully restore the Kelp DAO restaked ETH token.
- Aave’s total value locked (TVL) fell by nearly $12 billion following the exploit but has since rebounded above $15 billion.
- Voting is ongoing among Arbitrum DAO members regarding the release of frozen ETH, with over 90% in favor.
The Kelp DAO hack has significantly impacted the DeFi lending market, disrupting billions in liquidity and user confidence. Aave’s actions are crucial for restoring stability and trust within the ecosystem.
With Aave liquidating hacker collateral worth approximately $30.2 million, it aims to mitigate losses and stabilize its platform post-exploit.(Source)
