Aave and KelpDAO Launch $278M Recovery Plan After DeFi Exploit

Aave and KelpDAO have launched a coordinated recovery plan worth $278 million to recover from the April exploit that affected decentralized finance platforms.

The recovery plan involves burning 117,132 unbacked rsETH tokens on Arbitrum, which is a significant step towards restoring the integrity of rsETH supply. The protocols have also started refilling the LayerZero OFT adapter with nearly $278 million in assets.

KelpDAO has completed a 'security hardening pass' following the exploit and has upgraded bridge security by requiring four independent attestors instead of a single verifier. It is also migrating towards Chainlink CCIP infrastructure to improve cross-chain security and reduce future bridge risks.