Arbitrum Governance Opens Vote to Unfreeze $71 Million in Ether for Kelp DAO

Arbitrum governance has opened a vote to release about $71 million worth of Ether as the DeFi industry works to help Kelp DAO recover from a hack in April.

On May 1, Aave Labs, Kelp DAO, LayerZero, Ether.fi and Compound submitted a joint proposal asking Arbitrum governance to release 30,765 ETH, worth about $71 million, that had been frozen by Arbitrum’s Security Council.

All 34.2 million ARB cast so far have supported the proposal. The vote is scheduled to end on Thursday.

The proposal is intended to limit the fallout from the Kelp DAO incident. A hack on April 18 resulted in the loss of about 116,500 rsETH, valued at roughly $290 million at the time.

If the proposal passes, the unfrozen funds will be moved to a multisignature wallet with Aave Labs, Kelp DAO, Certora and Ether.fi serving as signers. The assets will be used to compensate rsETH holders and restore collateral.