DeFi United Raises $300 Million to Mitigate Fallout From KelpDAO Hack

A recent hack of KelpDAO's LayerZero bridge has had a ripple effect throughout the DeFi ecosystem, causing over $290 million in losses. The incident occurred on April 18th, when hackers associated with North Korea's Lazarus Group exploited vulnerabilities in the cross-chain bridge to steal rsETH tokens.

The stolen rsETH tokens were then used as collateral by multiple protocols, including Aave and Compound, creating a chain reaction that threatened the stability of these lending platforms. In response, the DeFi United alliance was formed to coordinate a self-rescue effort, raising over $300 million in just under two weeks.

The speed and coordination of this effort have been notable, with key participants including Aave, Lido, EtherFi, Ethena, and Consensys. The contributions have helped to mitigate the fallout from the hack and are seen as a testament to the resilience of the DeFi community.