Aave DAO is moving to commit 25,000 ETH from its treasury to help cover a shortfall in Kelp DAO’s rsETH backing. This move is part of a larger decentralized finance (DeFi) recovery effort following an incident on April 18. The exploit at Kelp DAO led to the extraction of 152,577 rsETH, creating an initial deficit of approximately 163,183 ETH.
The proposed contribution from Aave joins other significant pledges from various ecosystem protocols and individual backers. Lido DAO has proposed up to 2,500 ETH, and Ether.fi has pledged up to 5,000 ETH. Aave founder Stani Kulechov committed 5,000 ETH, and senior executive Emilio Frangella pledged 500 ETH. Golem also offered 1,000 ETH. Additionally, Mantle is providing a credit facility of up to 30,000 ETH to assist Aave in managing any remaining bad debt.
Estimates indicate the rsETH gap has been filled following these combined contributions, including Aave’s proposed 25,000 ETH, Mantle’s facility, frozen funds from Arbitrum, and pledges from Lido, Ether.fi, Stani Kulechov, Golem, BGD Labs, and Emilio Frangella.