Arbitrum Nears DeFi Recovery Milestone with $71 Million ETH Release

The Arbitrum network has taken a significant step towards recovering from the Kelp DAO exploit, which drained about $290 million worth of rsETH in April. The proposal to release 30,765 ETH, valued at around $71 million, was approved by 90.96% of voters in a Snapshot vote. This represents a major milestone for the DeFi recovery effort and brings the community closer to restoring part of rsETH's backing.

The proposal still requires a formal on-chain governance vote through Tally before the funds can be transferred into the recovery process. The transfer is necessary because the ETH was frozen through an emergency Security Council action, requiring DAO approval. A U.S. court has allowed the transfer process to move forward despite an unresolved legal claim.

DeFi United, a collective effort to limit contagion and help restore rsETH's economic backing, contributed 43,000 ETH, worth around $101 million, to the recovery plan. If the on-chain vote passes, the 30,765 ETH could become one of the largest contributions to the rsETH recovery effort.