DeFi Coalition Launches Ambitious Recovery Plan After $293 Million Exploit

A coalition of major decentralized finance (DeFi) protocols has launched a technical recovery plan to restore the rsETH token's full backing after a recent exploit left several lending markets with significant bad debt.

The initiative, led by the 'DeFi United' alliance, involves a dual-track approach to replenish the bridge lockbox and unwind the attacker's positions. The first track focuses on staged deposits of pledged Ether from various contributors, including a proposed 25,000 ETH from the Aave DAO and a 30,000 ETH loan from Mantle.

The second track targets eight affected Aave V3 positions and residual holdings on Compound through a governance-approved liquidation sequence. By systematically recovering and redeeming these collateralized assets, the coalition aims to clear the remaining deficit.

The DeFi United plan also includes mandatory upgrades to multi-verifier network configurations for all participating protocols to eliminate vulnerabilities exploited by attackers in the recent breach.