Aave Proposes 25,000 ETH Donation to DeFi United Recovery Fund After Kelp DAO Exploit

On April 18, 2026, an exploit of Kelp DAO's rsETH bridge disrupted the relationship between locked Ethereum collateral and mints on remote chains. In response, DeFi United was established to help restore the backing of rsETH. Aave emerged as the largest contributor, suggesting 25,000 ETH from its treasury. Stani Kulechov, the founder of Aave, committed 5,000 ETH, while Lido DAO offered 2,500 ETH, EtherFi proposed up to 5,000 ETH, and Golem contributed 1,000 ETH. The exploit resulted in a loss of 152,577 rsETH, leading to a deficit of approximately 163,183 ETH, though recovery efforts have reduced this to around 75,081 ETH. A proposal is currently under community review to address the remaining shortfall with a 30,000 ETH credit facility from Mantle, with a total of 120,015 ETH needed to fully restore rsETH backing.