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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On May 4, Aave LLC fired back with an emergency motion to vacate the restraining notice in the SDNY court. Aave argues that a thief does not gain legal title to stolen property simply by taking it. The ETH belongs to Kelp DAO victims and downstream DeFi users, not to North Korea, and therefore not to Gerstein Harrow's clients.

Aave is also requesting that if the restraining notice is not vacated, Gerstein Harrow's clients be required to post a $300M bond to cover damages to the hack victims. The DAO vote to transfer funds to a recovery multisig, which previously had near-unanimous support, could remain legally blocked pending the court's decision.

Disclaimer: Content is for informational and educational purposes only and does not constitute financial, investment, legal, or other professional advice. No representations or warranties are made as to accuracy, completeness, or timeliness. Use of this content is at your own risk, and you should consult a qualified professional before making decisions. No fiduciary or advisory relationship is created

Optimism expanded its Actions SDK, evolving it from an early developer preview into a more complete framework for embedding DeFi directly into applications. The updated SDK introduces fully integrated onchain financial actions, allowing users to lend, earn yield, swap tokens, and make payments without needing external wallets.

The Actions SDK supports lending through Aave and Morpho, and token swaps via Uniswap and Velodrome, with built-in routing and liquidity handling. A standardized action interface unifies all operations under a consistent structure, reducing integration complexity. The expansion deepens wallet infrastructure, adding embedded wallet integrations via Privy, Turnkey, and Dynamic, with support for EOAs, smart wallets, bundlers, and paymasters. The SDK enables multi-chain DeFi experiences across OP Stack chains.

Disclaimer: Content is for informational and educational purposes only and does not constitute financial, investment, legal, or other professional advice. No representations or warranties are made as to accuracy, completeness, or timeliness. Use of this content is at your own risk, and you should consult a qualified professional before making decisions. No fiduciary or advisory relationship is created