Aave DAO Proposes $58 Million Treasury Allocation for Kelp DAO Hack Recovery

The Aave DAO has taken a bold step in addressing the recent Kelp DAO rsETH bridge hack by proposing to use 25,000 ETH from its treasury to cover losses.

The proposal aims to stabilize the market for rsETH and restore confidence in decentralized finance (DeFi) governance. The plan involves a multi-pronged approach, including donations from partners and a loan agreement with Mantle.

According to the proposal, the DeFi Alliance has donated 14,570 ETH to help cover the losses. Aave has also secured a loan agreement with Mantle, which allows it to borrow up to 30,000 ETH. Any additional donations will be used to repay this loan.