Summary
- Aave said it had submitted a governance proposal seeking the return of Ethereum (ETH) funds frozen by the Arbitrum DAO after the rsETH incident.
- If the funds are released, they will be transferred to DeFi United for a joint recovery effort aimed at restoring rsETH collateral and compensating affected users.
- Major DeFi projects including Ether.fi, KelpDAO, LayerZero and Compound joined the proposal, which is now under review by the Arbitrum community.
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Aave has submitted a governance proposal tied to the KelpDAO incident, asking the Arbitrum DAO to return frozen Ethereum funds for use in a joint decentralized-finance recovery effort.
On April 25, Aave wrote on X that, after discussions with multiple stakeholders and service providers, it had submitted a governance proposal requesting the return of funds frozen after the rsETH incident.
Major DeFi projects including Ether.fi, KelpDAO, LayerZero and Compound joined the proposal. The group is seeking the release of Ethereum funds frozen by the Arbitrum Security Council after the rsETH-related incident on April 18.
If released, the assets will be transferred to DeFi United, a cross-protocol recovery initiative aimed at restoring rsETH collateral and compensating affected users.
Aave said the injection of funds could meaningfully advance efforts to resolve the issue, adding that other participants have also expressed a willingness to contribute.
The proposal is under review by the Arbitrum community, which is also gathering additional feedback.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
