Aave Proposes Historic Fund Allocation for Kelp DAO Security Breach Recovery

A recent proposal submitted to Aave's governance structure seeks authorization for the protocol to allocate a significant amount of funds to support DeFi United in addressing the Kelp DAO security breach.

The security incident, which occurred on April 18, involved an unauthorized exploitation of LayerZero bridge infrastructure, resulting in the minting of rsETH tokens that were subsequently deposited as collateral on Aave.

As part of its efforts to address the issue, Aave has committed $58 million worth of ETH to support DeFi United's recovery initiative. This includes a pledge from founder and CEO Stani Kulechov, who donated 5,000 ETH from his personal holdings.