Aave Sets Up rsETH Recovery Fund as KelpDAO Hack Response Advances

YM Lee

Summary

Aave said it has created a recovery fund to address issues tied to rsETH and has begun a coordinated response across the DeFi ecosystem.
The recovery plan will proceed under DAO decision-making procedures that include an Arbitrum governance vote, along with agreed terms and implementation steps.
It added that KelpDAO and LayerZero are participating in the recovery effort, and that the final recovery plan, user response procedures and additional updates will be released soon.

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Aave has set up a recovery fund to address issues tied to rsETH and begun a coordinated response across the decentralized finance ecosystem.

On April 25, Aave said on its official X account that service providers and ecosystem partners had established a recovery fund aimed at fully restoring rsETH collateralization. The plan will move forward under agreed terms and implementation steps, reflecting decentralized autonomous organization, or DAO, decision-making procedures that include an Arbitrum governance vote.

Supporting affected users and restoring stability across DeFi are the top priorities, Aave said, adding that the response is being coordinated through DeFi United.

KelpDAO and LayerZero are participating in the recovery effort. Aave said it had concluded talks with KelpDAO and LayerZero on the technical implementation process and that the work has entered the execution stage.

The final recovery plan, user response procedures and additional updates will be released soon, Aave said. It added that the cooperation shown by the DeFi community during the process had been especially impressive.

AAVE