Aave Takes Action to Resolve $290 Million Hack Crisis – Will Donate a Large Amount of ETH

As recovery efforts in the DeFi ecosystem accelerate following the KelpDAO-related rsETH crisis, Aave DAO has taken a notable step. According to a new governance proposal presented to the Aave community, the DAO is suggesting contributions of approximately 25,000 ETH (approximately $57.8 million) to a joint recovery initiative called “DeFi United.”

Aave stated that this contribution is part of a plan to strengthen the collateral structure of the rsETH asset and return market conditions to normal as quickly as possible. This initiative aims to close the collateral gap in KelpDAO’s rsETH product and protect affected users.

Related News: The Owner of the $344 Million in USDT That Tether Froze Yesterday Has Been Identified

According to the proposal, the “DeFi United” initiative is not limited to Aave; significant representatives of the ecosystem such as EtherFi, Lido, Mantle, Ethereum, and Golem Foundation are also contributing to the process. It was also reported that Aave founder Stani Kulechov and various developer teams are involved in this coordination.

As you may recall, the hack that occurred on April 18, 2026, disrupted the balance between rsETH’s collateral on Ethereum and assets minted on other chains, creating a “non-performing loan” risk in several protocols, including Aave. Despite funds being frozen by the Arbitrum Security Council, a collateral deficit still remains in the system that needs to be closed.

*This is not investment advice.

Continue Reading: Aave Takes Action to Resolve $290 Million Hack Crisis – Will Donate a Large Amount of ETH