- DeFi United has released a technical plan to restore backing for rsETH after the April 18 Kelp bridge exploit, which resulted in a $293 million loss.
- The recovery strategy involves converting pledged ETH into rsETH in tranches, depositing them into the bridge lockbox, and liquidating attacker-linked positions on Aave and Compound.
- The plan has secured over $302 million in commitments, with backing from major entities like ConsenSys and Ethereum co-founder Joe Lubin, but remains contingent on DAO governance approvals.
A recovery group affiliated with Aave has published a detailed technical plan to restore backing for the rsETH token following a massive $293 million exploit on April 18. The group, called DeFi United, outlined a multi-step process to bring the Kelp bridge back to normal operations.
The plan will convert committed Ether into rsETH and deposit it into the affected bridge lockbox. Consequently, LayerZero and Kelp have implemented new security measures before the bridge’s full return, according to Aave.
In parallel, the group will clear exploiter-linked positions holding 107,000 rsETH on Aave and Compound. This involves a temporary adjustment to the rsETH oracle price to enable controlled liquidations.
The recovered collateral will be transferred to a DeFi United multisig to clear deficits. However, the entire process remains contingent on DAO votes and finalized governance agreements.
The technical blueprint follows significant fundraising and support pledges. On Monday, Consensys and Joe Lubin joined the effort with a commitment of up to 30,000 ETH.
Furthermore, Aave Labs requested the Arbitrum DAO to release 30,765 ETH frozen after the exploit. As of Tuesday, the DeFi United website showed total commitments worth over $302 million.
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