Aave Seeks 25k ETH for Kelp DAO Recovery Efforts

A recent security incident at Kelp DAO has left the decentralized finance (DeFi) community reeling, with several protocols and individuals stepping forward to contribute towards recovery efforts.

As part of these initiatives, Aave's service providers have submitted a governance proposal seeking authorization to transfer 25,000 ETH from the protocol's treasury to DeFi United's recovery fund. This contribution aims to ensure complete backing for rsETH tokens, which were affected by the security breach at Kelp DAO.

The exploit involved an attacker creating unbacked rsETH through a compromised LayerZero bridge, which was then leveraged as collateral on Aave. Multiple DeFi protocols, including Lido DAO and Ether.fi, have committed ETH to the recovery initiative, while private contributors have also pledged support.