Summary
- DeFi United said it has gathered about 69,642 Ether (ETH), worth roughly $161 million.
- The rescue plan is largely aimed at addressing the liquidity crunch caused by the Kelp DAO hack and Aave's bad debt problem.
- Market participants are watching whether the structure, in which major protocols and individual contributors pool funds, could emerge as a DeFi risk-response model.
Forecast Trend Report by Period
Major decentralized finance players have joined an Aave rescue plan in a coordinated response to the fallout from the Kelp DAO hack.
Lookonchain, an on-chain data platform, said on April 25 that 14 projects and individual contributors had joined DeFi United so far. Publicly disclosed commitments totaled about 69,642 Ether, worth roughly $161 million.
Mantle emerged as the biggest contributor with a proposal to provide 30,000 ETH. Aave DAO pledged 25,000 ETH, and co-founder Stani Kulechov said he would contribute 5,000 ETH in a personal capacity. Other participants include Ether.fi, Lido and the Golem Foundation. Some commitments are still awaiting votes, while others have already been finalized.
The effort is directly tied to the recent Kelp DAO hack. Kelp DAO previously suffered losses of about $292 million, or roughly 116,500 rsETH, after an attacker exploited a cross-chain bridge vulnerability. The hackers reportedly minted large amounts of fake, unbacked rsETH, posted it to Aave as collateral, and then borrowed and withdrew legitimate assets.
Aave was left with substantial bad debt and faced a liquidity crunch. Its total value locked also plunged below $30 billion.
The rescue plan is being watched as an emergency effort to stop systemic risk from spreading across the DeFi ecosystem. With major protocols and individual contributors pooling funds, the structure could become a model for future DeFi risk responses.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
