ArbitrumDAO approved a temperature check vote to release 30,765.67 ETH frozen by the Arbitrum Security Council following the April 18 KelpDAO exploit. The vote passed on May 7 with 90.96% in favor and effectively no opposition.

The frozen ETH was seized from the exploiter on Arbitrum One on April 21 and moved to a protocol-controlled address pending a governance decision on its destination. This proposal routes those funds into the coordinated DeFi United recovery effort, a 3-of-4 multisig controlled by signers from Aave Labs, KelpDAO, EtherFi, and Certora.

The funds will be applied toward restoring rsETH's backing. The next steps involve a 3-day voting delay once the vote is submitted for onchain execution, a 14-day vote, an 8-day L2 waiting period, a 1-week L1 message finalization, and a final 3-day L1 waiting period before execution. In total, approximately 42 days remain before the transfer is fully executed.

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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.

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