Consensys And Joseph Lubin Commit 30,000 ETH To DeFi United
Consensys and Joseph Lubin pledge up to 30,000 ETH, and SharpLink joins as a strategic advisor, to DeFi United.
Consensys and Joseph Lubin have committed up to 30,000 ETH in financial support toward the DeFi United rsETH recovery effort. SharpLink is also participating 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 for approximately 49 days pending governance approval.
The rsETH backing shortfall is now effectively covered by a combination of previously announced and newly confirmed commitments. These include contributions from Aave DAO, Lido, EtherFi, Ethena, Mantle, and Compound Finance, which committed 3,000 ETH. The Babylon Foundation is also depositing 3 million USDT into Aave, and Tron is depositing 20 million USDT into Aave to assist with liquidity. The stablecoin deposits have helped ease utilization rates slightly, allowing USDT lenders to begin withdrawing.
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DeFi United Secures Sufficient Funds To Restore rsETH Backing
Stani Kulechov confirms DeFi United has the funds to fully restore rsETH backing, pending governance votes.
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 in connection with the exploit. If approved, the funds would be directed into a 2-of-3 Gnosis Safe controlled by Aave Labs, KelpDAO, and Certora, and applied solely toward restoring rsETH's backing. The full AIP governance process is estimated to take approximately 49 days to complete. Aave expects to release a detailed recovery plan and next steps for affected users in the coming days.
EarnUSD is a stablecoin vault by Lido for earning transparent, onchain USD-denominated rewards. Get started today at stake.lido.fi/earn
Disclaimer: Content is for informational purposes only, not endorsement or investment advice. The accuracy of information is not guaranteed.
Ethereum Foundation Swaps aWETH For wstETH
The 21,269 aWETH-to-wstETH swap reduces Lido EarnETH's WETH debt on Aave by ~20,000 WETH after the KelpDAO exploit drove utilization to peak levels.
The Ethereum Foundation exchanged 21,269 aWETH from its Aave lending position for 17,254 wstETH in a transaction with Mellow and Lido Finance. Mellow is a vault curator for Lido's EarnETH vault, which generates yield through looping strategies, where it borrows WETH against wstETH collateral to multiply staking exposure.
The KelpDAO exploit drove Aave's WETH market to peak utilization, causing borrowing rates to spike sharply and hurting previously profitable vault positions. Mellow obtained aWETH to pay back the vault's WETH debt on Aave without needing to sell wstETH on the open market. The swap brought EarnETH's outstanding WETH debt on Aave from approximately 82,000 to 62,000 WETH, improving the vault's health factor. Disclosure: Lido is a current sponsor of ETH Daily.
EarnUSD is a stablecoin vault by Lido for earning transparent, onchain USD-denominated rewards. Get started today at stake.lido.fi/earn
Disclaimer: Content is for informational purposes only, not endorsement or investment advice. The accuracy of information is not guaranteed.