DeFi United Unveils Recovery Plan for Kelp DAO Exploit

The DeFi United coalition has taken swift action to address the recent Kelp DAO exploit, publishing a comprehensive recovery plan to restore rsETH token backing. The plan aims to recover approximately $293M worth of unbacked rsETH by converting raised Ethereum (ETH) into rsETH in tranches and directing them to the bridge's lockbox contract.

The coalition will also conduct controlled liquidations of the attacker's positions on Aave and Compound, leveraging a temporarily adjusted rsETH price oracle. Funds recovered from these liquidations will be returned to protocol pools, restoring approximately 13,000 ETH on Aave and 16,776 ETH on Compound.

DeFi United has emphasized the importance of community approval and timely execution in ensuring the success of this plan. To minimize risks, converting ETH to rsETH and making lockbox deposits will be carried out in multiple tranches.