According to reports from crypto.news, KelpDAO announced on April 30 that it has completed its committed contribution to the DeFi United recovery plan, providing 2,000 ETH in treasury funds to restore peg support for rsETH. The protocol emphasized that its internal commitment before any public statement was that 'rsETH holders will not be abandoned,' noting the contribution is a direct manifestation of that pledge. The funding represents a one-time investment intended to restore rsETH to its nominal exchange rate following the significant exploit that occurred on April 18.
As reported by Phemex News, ConsenSys and Ethereum co-founder Joseph Lubin have donated 30,000 ETH to DeFi United, a recovery alliance formed in response to the Kelp DAO bridge vulnerability. This significant contribution boosts the alliance's total raised funds to over $300 million, underscoring strong institutional support for the DeFi sector amid recent challenges. Prior to ConsenSys's involvement, the alliance had secured over $161 million, with contributions from Aave, Mantle, and Lido. The coordinated effort by major DeFi players to deploy substantial capital is seen as a statement of confidence in Ethereum's ecosystem.
According to Phemex News, Etherfi CEO has announced the commitment of 5,000 ETH to stabilize the decentralized finance ecosystem following the recent Kelp incident. The move aims to prevent a potential collapse within the DeFi sector, with the CEO highlighting that Aave, a major DeFi platform, was the 'least to blame' for the incident, suggesting that other factors contributed more significantly to the situation. This additional contribution demonstrates the broader industry commitment to maintaining DeFi stability.
As reported by crypto.news, DeFi United, in collaboration with multiple ecosystem participants including Mantle, Consensys, Arbitrum, Lido Finance, and LayerZero, has formulated a comprehensive recovery path. The coalition has tentatively raised more than $302 million to date, with much of the funding coming from DAOs and crypto businesses within the ecosystem. The recovery strategy includes re-capitalization of the bridging treasury, restoration of oracle functionality, and addressing funding gaps in affected markets. The alliance aims to restore full collateral for affected positions without hastily altering governance structures.
As reported by crypto.news, the April 18 exploit drained 116,500 rsETH—worth about $290 million to $293 million—from KelpDAO's LayerZero-powered bridge, representing roughly 18% of rsETH's total supply. The attacker used the tokens as collateral across Aave, Compound v3, and Euler to borrow an estimated $236 million in ETH and WETH, leaving protocols with significant bad debt. The exploit has significantly impacted the rsETH ecosystem and prompted the coordinated recovery effort across multiple DeFi protocols.
According to Phemex News, while the recovery plan has stabilized the market, restoring user trust remains a longer-term challenge. Ethereum is currently trading at $2,310, reflecting a 1.5% daily increase and a 12% rise over the past month. The coordinated effort by major DeFi players to deploy substantial capital is viewed as a positive development for the Ethereum ecosystem, demonstrating the sector's resilience and commitment to maintaining trust in decentralized finance infrastructure.
