- KelpDAO recovered 73,700 ETH from the rsETH incident, reducing the total deficit from 163,200 ETH to approximately 89,500 ETH.
- Commitments of over 43,500 ETH have come from major players like Aave, Mantle, and Lido Finance to support the recovery efforts.
- The new proposals, including a regulated recovery vault and liquidity support, aim to manage bad debts and stabilize the cryptocurrency ecosystem.
KelpDAO shared a new update on its ongoing recovery efforts following the recent rsETH incident. The team confirmed that a significant portion of the funds had been recovered, although there was a large gap. The update comes as several cryptocurrency projects continue to coordinate support under the “DeFi United” initiative.
According to KelpDAO, the initial shortfall was 163,200 ETH after the incident. Since then, recovery efforts have recovered 73,700 ETH. This includes approximately 40,300 rsETH, equivalent to approximately 43,000 ETH, redeemed directly by Kelp. In addition, the Arbitrum Security Board received another 30,700 ETH. After these steps, the remaining deficit is now around 89,500 ETH.
KelpDAO Hack Recovery is powered by Defi United
The recovery process involved close coordination with several major players in the cryptocurrency ecosystem. Teams from Aave, EtherFi, Lido Finance, Golem, Mantle, Frax Finance, and LayerZero contributed in various ways. KelpDAO noted that further announcements are expected as discussions continue and contributions are formalized.
Seaweed and @ghost We have been working closely with ecosystem partners since April 18 to coordinate recovery efforts for rsETH holders. We want to share some real-world data on where we’re at, the progress we’ve made, and the next steps.@ether_fi @Athens @LidoFinance @golemproject… pic.twitter.com/iwLcCcvIov
— Kelp (@KelpDAO) April 24, 2026
Of the remaining gap, confirmed public commitments have reached around 43,500 ETH so far. The pledges came from Mantle, Aave founder Stani Kulechov, EtherFi, Lido, and Golem. KelpDAO said it is working directly with partners to finalize these contributions and move closer to closing the deficit.
The team added that rsETH holders remain a top priority. She added that updates will continue as more commitments are confirmed and funds are secured. The broader goal is to stabilize the system without putting pressure on users of any single protocol.
Meanwhile, new ideas are being discussed within the Aave community to deal with the situation in an organized manner. Mark Zeller suggested that instead of asking for donations, create a dedicated vault called “DeFi United ETH.” Under this plan, Aave’s WETH income would be redirected into the vault, with a set annual return of 5 percent.
The proposal also includes tokenizing vault deposits into a tradable asset called “AaveETH.” This would allow users to participate and also cover the shortfall gradually by paying interest and repaying the principal. Zeller proposed opening the vault to public deposits and determining its size based on the worst-case deficit.
He believes such a model could have raised money quickly if it had been implemented earlier. He also noted that Aave has strong revenue streams, while its DAOs and Labs maintain significant reserves. In his view, these resources could help solve the problem and reduce the risk of broader market panic. Zeller added that he would commit most of his actions Ethereum To the basement if the plan moves forward.
Besides this, Mantle proposed to use its treasury to provide Liquidity Support. This support will help Aave manage the bad debts that arose during the incident. The issue arose when attackers used unbacked tokens as collateral, creating an imbalance across the system.
By offering the loan, Mantle aims to stabilize the market and prevent forced liquidation. Such liquidation could have led to lower prices and increased losses. Note that this proposal forms part of a broader industry effort to contain the damage and restore balance.
Other contributors also provided support. Lido Finance has allocated 2,500 stETH to a dedicated relief fund. Many institutions and ecosystem players are now working together to ensure a coordinated response.
Support for the plan has extended beyond protocol teams. Ben Zhu, co-founder and CEO of Bybit, has publicly supported Mantle’s proposal. He said the stock exchange would vote in favor of the plan as Mantel’s main backer. Zhu noted that the cryptocurrency industry has banded together during previous crises, including incidents involving Bybit, and said similar cooperation is still important now.
The list of participants in DeFi United’s effort continues to grow. They include Aave, EtherFi Foundation, Lido DAO, Golem Foundation, Ink Foundation, LayerZero, Mantle, Arbitrum, Frax Finance, Ethena, Tydro, and Golem Factory.
