Aave Liquidates Final rsETH Positions, Progress Made in DeFi United Recovery Effort

Aave has completed the liquidation of the Kelp DAO attacker's remaining rsETH-backed positions on Ethereum and Arbitrum, a crucial step towards restoring full backing for the restaked Ether token.

The liquidation process did not impact user funds, as Aave's Umbrella protection system was not activated during the operation. The collateral recovered from the liquidations has been transferred to Recovery Guardian, a multisignature wallet controlled by DeFi United.

DeFi United still requires additional support from stablecoin issuers Circle, Ethena, Frax, and Kraken-backed Ink to fully restore rsETH backing. With over 90% of Arbitrum DAO voters supporting the release of $71 million in frozen Ether linked to the exploit recovery effort, progress is being made towards recapitalizing rsETH.