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.

Aave service provider TokenLogic published a governance proposal to allocate a 25,000 ETH contribution from the Aave DAO treasury toward DeFi United, a coordinated recovery effort aimed at fully restoring the backing of KelpDAO's rsETH. Aave calculates a residual funding gap of approximately 75,081 ETH, after accounting for 30,766 ETH frozen by the Arbitrum Security Council and expected liquidation recoveries from the attacker's positions on Aave and Compound.

DeFi United is led by Aave service providers and includes contributions from Lido, EtherFi, Ethena, Ink, BGD Labs, Stani Kulechov, Emilio, Ernesto, and the Golem Foundation, with additional pledges expected. Mantle has separately committed a 30,000 ETH credit facility to the coalition. With Aave's 25,000 ETH contribution added, approximately 5,511 ETH of the residual gap remains, which the coalition expects will be covered.

Any additional public donations received after the proposal is approved will not reduce Aave's treasury commitment, instead it will be directed toward repaying Mantle's credit facility. Once gathered in full, the coalition will place the full 120,015 ETH into the LayerZero lockbox to execute the recovery. The proposal will advance to a Snapshot vote by AAVE token holders.

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.

• DeFi United relief vehicle for rsETH.

• Mantle extends 30,000 ETH loan to Aave.

• Lido pledges 2,500 stETH to relief fund.

• Ethereum Security QF round goes live.

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

Aave service providers launched DeFi United, a deficit relief initiative designed to fully cover the under-backed rsETH liquid staking token from KelpDAO. EtherFi committed 5,000 ETH, Lido 2,500 ETH, and Golem 1,000 ETH, while Aave founder Stani Kulechov personally pledged 5,000 ETH (~$11.6M). The rsETH shortfall is estimated at 118,000 ETH, with Arbitrum's recovered 30,000 ETH potentially directed toward the fund. Kulechov also called on THORChain to contribute the ~$450,000 in swap fees generated from the DPRK's 75,700 ETH in laundering activity. Read more →

Lido DAO introduced a governance proposal to allocate 2,500 stETH to the Aave-led relief vehicle covering the rsETH shortfall. Lido's EarnETH vault has direct exposure to rsETH, and depositors would face an estimated 9% loss if the deficit is not resolved, partially covered by Lido's first-loss protection program. Read more →

Disclosure: Lido is a current sponsor of ETH Daily.

Mantle published a governance proposal offering Aave DAO a loan of up to 30,000 ETH to address bad debt from the KelpDAO LayerZero exploit. The loan carries a variable rate equal to the Lido staking yield plus 1% APR, with a 36-month maturity and no early repayment penalty. Mantle would also be delegated 130,000 AAVE tokens for governance participation, with proceeds directed toward MNT burns or ecosystem funding. The proposal is open for community discussion ahead of a formal Snapshot vote. Read more →

The $1 million Ethereum Security quadratic funding round is live on Giveth, featuring roughly 100 projects improving Ethereum and L2 security. TheDAO Security Fund is allocating a 500 ETH matching pool. The round is the largest QF round hosted on Giveth to date. Read more →

• ACDE #235 minutes

• EtherFi security hardening

• Lido update for EarnETH

• Succinct launches ZCAM

• Safe quarterly report

• EIP-8141 explainer

• EIP-8182 for private transfers

• MEGA TGE on April 30

• Op-geth deprecates May 31st

• ZKsync Lite shuts down May 4th

• Local ENS gateway stack

• Fluid Lite limited instant withdrawals

• Bitwarden identified a malicious package

• Tether freezes $344m USDT

• Blockchain Association letter to SBC

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