Aave and Kelp Secure Significant Milestone in Recovery Efforts

Aave and Kelp have taken significant steps towards recovering from a major exploit that drained $292 million from their protocol. On May 12, they successfully burned the exploiter's rsETH holdings on Arbitrum, marking the completion of the first phase of their technical recovery plan.

This action removes the last remaining unbacked rsETH from circulation, bringing the community closer to restoring full functionality. The coalition formed to address the exploit, DeFi United, has raised over $327 million in ETH commitments to restore rsETH backing without socializing losses.