Kelp DAO Completes rsETH Recovery After $292M Hack

Kelp DAO has successfully completed the final stage of its rsETH recovery plan, bringing an end to a challenging period for the protocol. The hack in early 2025 resulted in a significant loss of assets, but the structured restoration process has allowed the project to recover and restore user funds.

The recovery phase was designed to replenish affected tokens in phased transfers, with the final batch of rsETH transferred to the Omnichain Fungible Token adapter. This marks the end of the restoration process, which aimed to minimize disruption to the broader DeFi ecosystem.

With all core functions now operating normally, including minting, redemption, and rewards distribution, Kelp DAO can focus on rebuilding user trust and strengthening its security posture. The incident highlights the need for improved security standards in cross-chain infrastructure as the DeFi ecosystem continues to expand across multiple blockchains.