Aave Organizes DeFi Rescue After $292M KelpDAO Exploit

Aave is organizing a DeFi rescue effort after a $292 million KelpDAO exploit impaired collateral backing tied to rsETH. Aave said Lido, EtherFi and founder Stani Kulechov have proposed or indicated support, including up to 2,500 stETH and two separate 5,000 ETH commitments. Aave’s incident report estimated a hole of more than 112,000 rsETH after the attacker minted 116,500 unbacked rsETH and used nearly 90,000 of them as collateral to borrow about $190 million in assets. Arbitrum’s security council earlier froze 30,766 ETH linked to the exploit, but Aave said the broader effort is now focused on recapitalizing rsETH.

AAVE2.02%
STETH-0.64%
ETH-1.37%
ARB3.16%
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