Aave has successfully executed a controlled liquidation sequence on rsETH collateral from the April 18th KelpDAO attacker's positions on the lending protocol. Approximately 89,567 rsETH was seized from the attacker across the Ethereum mainnet and Arbitrum V3 markets.

A temporary oracle adjustment put the attacker's rsETH positions into a liquidatable state, after which the collateral was seized and swept to a recovery guardian multisig. The guardian flag was enabled, payloads executed, and then the flag was disabled, with all configuration changes fully reverted upon completion.

No other users were affected by the liquidation process. The recovered rsETH is now being redeemed for ETH through Kelp's standard redemption procedure, with the resulting ETH used to clear the deficit across affected Aave markets on Ethereum and Arbitrum. The full restoration of rsETH backing remains in its final stages.

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