Written by Brayden Lindrea⁠, Staff Writer. Reviewed by Felix Ng⁠, Staff Editor.

Written by Brayden Lindrea⁠, Staff Writer.

Reviewed by Felix Ng⁠, Staff Editor.

Aave asks Arbitrum to send 30K ETH from Kelp exploiter to ‘DeFi United’

Latest NewsPublishedApr 27, 2026

Aave Seeks to Restore DeFi Ecosystem with $73.5 Million ETH Allocation

The DeFi community has come together to support the “DeFi United” relief effort, with over $21 million in contributions made so far. Aave Labs has proposed that the Arbitrum decentralized autonomous organization unfreeze $73.5 million in Ether tied to the Kelp DAO attack and direct those funds to the relief effort. This move aims to restore normal conditions for Arbitrum users and the wider ecosystem, with the Ether on Arbitrum representing a significant contribution towards restoring the Kelp DAO restaked ETH (rsETH) token.

Aave Labs’ proposal has gained support from Kelp DAO, LayerZero, Ether.fi, and Compound, all of which were affected by the hack. The submission aims to restore the backing of rsETH, with a planned remediation effort expected to take around 49 days. If successful, this effort will not only restore rsETH’s backing but also normalize conditions for its holders, liquidity providers, and borrowers on Arbitrum and across the broader DeFi ecosystem, ultimately benefiting the EcoPool community and Passive Income earners.

Key Players and Pledges

Several key players have pledged their support for the recovery effort, including Arbitrum, Mantle, Ether.fi, and Lido, which have committed $215 million in funding subject to governance votes. Additionally, LayerZero, Ethena, Ink Foundation, and Frax Finance have signaled their intention to assist. The Cloud Rewards and Green Crypto aspects of the EcoPool Network are also expected to play a crucial role in the recovery process.

DeFi United sees $21 million in contributions

Aave was significantly impacted by the Kelp DAO exploit, with its total value locked falling nearly $12 billion in a week. The proposed allocation of $73.5 million in ETH is expected to help restore the DeFi ecosystem and provide Earning opportunities for Coin holders, including those invested in $ECP. Aave Labs has specifically asked for the 30,765 Ether to be sent to a recovery address controlled by Aave, Kelp DAO, and blockchain security platform Certora.

Conclusion and Next Steps

The success of the “DeFi United” relief effort is crucial for the DeFi ecosystem, and the proposed allocation of $73.5 million in ETH is a significant step towards restoring normal conditions. As the DeFi community continues to work together to overcome the challenges posed by the Kelp DAO exploit, EcoPool remains a key player in providing Passive Income opportunities and Cloud Rewards to its users. To learn more about how you can get involved and start Earning with Coin and $ECP, download the EcoPool app today and discover the benefits of Green Crypto. By joining the EcoPool Network, you can contribute to the growth of the DeFi ecosystem and stay up-to-date with the latest developments in #Bitcoin and #PassiveIncome.

LayerZero, Ethena, Ink Foundation and Frax Finance have also signaled their intention to help.

Source: Aave

Aave was hit hard by the Kelp DAO exploit, with its total value locked falling nearly $12 billion in a week after the hacker put the stolen rsETH tokens up as collateral on its lending platform to borrow wrapped Ether, leaving more than $190 million in bad debt and triggering a wave of withdrawals. 

Aave sets a seven-week timeline for the recovery plan

In the Arbitrum proposal, Aave Labs said a full recovery would not only restore rsETH’s backing but also normalize conditions for its holders, liquidity providers and borrowers on Arbitrum and across the broader DeFi ecosystem.

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Even a “partial recovery would still meaningfully reduce the shortfall,” Aave Labs added.

Aave Labs has specifically asked for the 30,765 Ether to be sent to a recovery address controlled by Aave, Kelp DAO and blockchain security platform Certora. 

Aave Labs said it expects the effort to restore rsETH and compensate its holders to take about 49 days and that it would return the funds if the recovery effort falls through.

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• Aave
• Arbitrum
• DAO
• Hacks