Gate News message, April 23 — Aave announced today a coordinated “DeFi United” relief fund to help restore the backing of rsETH, a liquid restaking token that became underbacked following the April 18 Kelp bridge exploit. The initiative aims to protect funds across multiple lending markets affected by the incident.
Lido Finance has been named as the first public participant in the recovery effort. Lido contributors submitted a governance proposal to contribute up to 2,500 Lido Staked Ether (STETH), worth approximately $5.7 million, to the dedicated relief fund. According to the proposal, the total rsETH deficit exceeds 100,000 ETH, and both Aave and Lido indicated that additional indicative commitments from other service providers are already in place. Without full coverage, Lido warned that EarnETH vault depositors could face losses of up to approximately 9,000 ETH.
Aave also announced that it has paused rsETH reserves across Ethereum Core, Arbitrum, Base, Mantle, and Linea to support recovery efforts. The platform stated that further commitments will be announced as they are formalized.
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