• SoP relaunches as Protocol Institute.

• LayerZero contributes 5k ETH to DeFi United.

• DeFi United technical recovery plan.

• Ethereum issuance reduction discussions.

EarnUSD is a stablecoin vault by Lido for earning transparent, onchain USD-denominated rewards. Get started today at stake.lido.fi/earn

The Summer of Protocols, originally seeded by the Ethereum Foundation, relaunched as The Protocol Institute, a new initiative to advance the study, design, and stewardship of protocols across research, entrepreneurship, governance, culture, and education. Read more →

LayerZero pledged 5,000 ETH to DeFi United and another 5,000 ETH to support Aave market liquidity, bringing its total commitment to 10,000 ETH. DeFi United's total fundraise has surpassed 137,708 ETH (~$315M). Read more →

Aave published its technical plan for DeFi United, using temporary rsETH oracle adjustments on Ethereum and Arbitrum to liquidate 107,000 rsETH held across seven exploiter addresses on Aave and Compound. Recovered rsETH will be redeemed through Kelp to clear the deficits. Read more →

• Ethereum issuance reduction discussions-

• from: Dima Gusakov, Evan Van Ness, and Tom Lee.

• Nouns statement on Proposal 955.

• Charon v1.10 release.

• This week in Enterprise Onchain.

• Privacy Boost on Soneium.

• Human Protocol with Griff Green.

• Etherscan to hide low-value txs.

• Foundation goes offline.

• Puffer contributes to DeFi United.

• EtherFi cuts off 8 L2s.

• Polymarket CLOB update.

• CoW Swap turns 5.

Reach 10,000+ Ethereum-native subscribers every weekday. Daily issues and dedicated send slots are open. Please get in touch to book a placement.

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

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.

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.

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.

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.