Aave published its technical implementation plan for DeFi United, a coordinated effort to recover the backing of KelpDAO's rsETH LST following the LayerZero bridge exploit on April 18, 2026. Beyond restoring rsETH's full backing, the recovery plan also includes steps to recover the 107,000 rsETH being used as collateral across seven exploiter addresses on Aave and Compound Finance.

Yesterday, DeFi United announced that it secured sufficient ETH commitments to bring rsETH back to its nominal 1.07 ETH exchange ratio. The ETH will be converted to rsETH in tranches and deposited into the bridge lockbox, allowing the bridge to resume operations.

Recovering the rsETH collateral in DeFi will involve governance proposals to temporarily adjust rsETH's oracle price on both Ethereum and Arbitrum, enabling controlled liquidations of the exploiter's positions. The recovered rsETH will then be redeemed for ETH through Kelp and used to clear the resulting deficits on both networks. Compound will execute a similar process.

Once the recovery is complete, all temporary configuration changes will be fully reverted, and frozen markets will be unfrozen, allowing lenders to withdraw collateral. Aave noted that the successful execution relies on the attacker not interfering with the liquidation sequence.

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LayerZero, the bridging protocol whose infrastructure was exploited in the April 18 rsETH attack, announced it is contributing 5,000 ETH to DeFi United's recovery effort. It is also supplying an additional 5,000 ETH to support Aave market liquidity, bringing its total commitment to 10,000 ETH. LayerZero had signaled its intent to contribute last week but withheld the amount until today's announcement.

DeFi United's total fundraise has surpassed 137,708 ETH, currently worth approximately $315 million. The Aave DAO leads contributions with 25,000 ETH, followed by EtherFi and Stani Kulechov personally. Compound Finance has pledged 3,000 ETH, Lido Finance 2,500 ETH, KelpDAO 2,000 ETH, and Golem 1,000 ETH.

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• DeFi United secures sufficient funds.

• Consensys commits 30,000 ETH.

• Bitmine crosses 5m ETH in holdings.

• Hayden buys back hayden.eth.

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Aave founder Stani Kulechov announced that the DeFi United initiative has secured sufficient funds to restore the full backing of rsETH following the April 18 LayerZero bridge exploit. Execution remains pending, subject to governance votes and the finalization of indicative agreements. Aave has also aligned with KelpDAO and LayerZero on the technical steps required to carry out the recovery plan. Over the weekend, Aave submitted a governance proposal to the Arbitrum DAO requesting the release of 30,765.67 ETH frozen by the Arbitrum Security Council. Read more →

Consensys and Joseph Lubin committed up to 30,000 ETH in financial support toward the DeFi United rsETH recovery effort, with SharpLink joining in a strategic advisory capacity. The contribution is particularly significant given that the 30,765.67 ETH frozen by the Arbitrum Security Council will not be liquid until the governance process is completed. The Babylon Foundation is also depositing 3M USDT and Tron is depositing 20M USDT into Aave to assist with liquidity. Read more →

Bitmine Immersion Technologies crossed 5 million ETH in holdings, announcing a total of 5,078,386 ETH valued at approximately $12 billion at current prices. The milestone maintains Bitmine as the largest Ethereum treasury in the world and represents 4.21% of total ETH supply. Bitmine has a stated goal of acquiring 5% of all ETH in circulation. Of the 5.078 million ETH held, 3,701,589 ETH (~73%) is currently staked, generating annualized staking revenues of $264 million at a yield of 3.033%. Read more →

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Disclaimer: Content is for informational purposes only, not endorsement or investment advice. The accuracy of information is not guaranteed.