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Guavy AI Editorial Team••Sentiment: 2•Clout: 82

$71 Million in Frozen ETH at Stake for Arbitrum Governance Decision

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A coalition of major protocols, including Aave, Kelp and LayerZero, has submitted a proposal to the Arbitrum DAO to release $71 million in frozen ETH.

The funds are crucial for restoring the missing backing behind rsETH, affected by the Kelp DAO exploit. DeFi United, the cross-protocol relief effort, emerged as the main vehicle for trying to restore the missing backing.

Releasing the frozen funds into a recovery vehicle may set a precedent for how emergency controls intersect with broader market repair on the network.