Aave Unpauses rsETH Markets After Coordinated Recovery Effort

Aave has restored access to rsETH markets on multiple blockchain networks following a major exploit that occurred in April. The incident involved an attacker minting over $292 million worth of unbacked rsETH tokens through Kelp DAO's LayerZero bridge.

The DeFi United coalition, comprising Aave, Kelp DAO, Lido, and LayerZero, worked together to resolve the crisis. The coalition implemented a structured response plan that included liquidating the attacker's positions, burning the fraudulent tokens, and securing remaining funds.

As part of the recovery effort, over 117,000 rsETH tokens valued at approximately $278 million will refill recovery reserves in stages through late May. Deposits remain temporarily closed but are set to reopen after a brief stabilization window.