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DeFi Protocols Pledge 43K+ ETH in $101M Recovery Effort

DeFi United pledges $101M to restore rsETH after $293M Kelp exploit.

  • A collective of DeFi protocols has pledged over 43,500 ETH—worth more than $101 million—to restore the backing of rsETH.
  • The relief effort, dubbed “DeFi United,” was organized by Aave in response to a $293 million exploit on the Kelp restaking platform.
  • Major pledges are confirmed from Mantle, the EtherFi Foundation, Lido DAO, the Golem Foundation, and others.

In an unprecedented show of solidarity, eight major decentralized finance protocols united this week to launch a recovery effort for users affected by a massive $293 million exploit. The coalition, responding to a liquidity shock on the Kelp restaking platform last Saturday, aims to restore the backing of the compromised rsETH asset.

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Consequently, the total commitment has surpassed 43,500 Ether, valued at over $101 million. The largest pledges at the time of writing came from the EtherFi Foundation and Mantle, with significant contributions from Lido DAO and the Golem Foundation.

Meanwhile, the decentralized lending platform Aave, which called the initiative “DeFi United,” emphasized the importance of cooperation. “We believe ecosystem collaboration matters most in moments like this, and our priority is achieving the strongest possible available outcome for users,” said Aave on Thursday.

Additional protocols joining the pledge include Ethena, LayerZero, the Ink Foundation, and Tyrdo. This coordinated response seeks to stabilize the ecosystem following one of the largest exploits this year.

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