DeFi Coalition Aims to Restore Backing After $292M Kelp Bridge Exploit

DeFi United, a recovery coalition led by Aave, has unveiled a plan to restore backing for rsETH following the devastating $292M Kelp bridge exploit. The attack, attributed to North Korea's Lazarus Group, left 116,500 rsETH without proper burning on the source chain, resulting in a significant backing shortfall.

The coalition's technical roadmap proposes converting committed ETH into rsETH and depositing it into the affected bridge lockbox, enabling the bridge to resume operations. This plan will require adjusting the rsETH oracle price temporarily, liquidating exploiter positions in a controlled manner, and redeeming the rsETH for ETH.