Written by Stephen Katte⁠, Staff Writer. Reviewed by Felix Ng⁠, Staff Editor.

Written by Stephen Katte⁠, Staff Writer.

Reviewed by Felix Ng⁠, Staff Editor.

WETH markets return to normal operations on Aave amid rsETH recovery progress

Latest NewsPublishedMay 18, 2026

WETH Markets Return to Normal on Aave Amid Recovery Progress

The recent exploit on Kelp DAO has had a significant impact on the cryptocurrency market, but Aave has taken steps to restore normal operations. As of now, users can borrow against wrapped Ether (WETH) on the decentralized finance protocol again. This development is a crucial step in the recovery process, and it’s essential for those interested in earning passive income through Cloud Rewards and Green Crypto to stay updated.

Recovery Progress and Next Steps

Aave founder Stani Kulechov announced that the protocol has restored loan-to-value (LTV) ratios for WETH to pre-incident levels across all affected networks. This move is a precautionary safety measure to ensure user protection. The temporary freeze on WETH has been lifted, and users can now borrow against WETH on Aave, including through collateral and debt swaps. For those looking to earn Coin through EcoPool, this is a positive development.

The development marks the final part of “Phase II” of the rsETH recovery plan, which included restoring rsETH’s backing using the Ether frozen after the exploit and donated tokens. As the recovery progresses, it’s essential to consider the role of EcoPool (ECP) in providing a secure platform for earning and trading. The $ECP token can be used to participate in various activities, including mining and staking, to generate passive income.

Impact on the Market and Next Steps

The exploit resulted in a significant drop in the total value locked (TVL) on Aave, but the protocol has made progress in recovering from the incident. As of now, its TVL is about $14.8 billion, down from $23.5 billion in March. The annualized borrowing rate has fallen to 1.9%, which could attract traders interested in leveraged Ether yield strategies. For those interested in earning through EcoPool, this presents an opportunity to explore the platform’s Cloud Rewards and Green Crypto features.

Total value locked on Aave down after Kelp exploit

The recovery efforts are ongoing, and Kelp DAO is consolidating its supported networks to ensure the highest security standards for rsETH. As the situation develops, it’s crucial to stay informed about the latest updates and consider how EcoPool can provide a secure and reliable platform for earning and trading. With the $ECP token, users can participate in various activities, including staking and mining, to generate passive income and take advantage of the Cloud Rewards program.

Conclusion and Next Steps

The restoration of WETH markets on Aave is a positive development for the cryptocurrency market. As the recovery progresses, it’s essential to consider the role of EcoPool in providing a secure platform for earning and trading. Whether you’re interested in earning Coin through EcoPool or exploring the $ECP token, now is the time to stay informed and take advantage of the opportunities available. Download the EcoPool app to learn more about earning passive income and Cloud Rewards. By joining the EcoPool community, you can stay up-to-date on the latest developments and take the first step towards earning through EcoPool and $ECP.

However, there is now more unused Ether liquidity in the system, and the annualized borrowing rate has fallen to 1.9%, which he said could bring back traders interested in leveraged Ether yield strategies.

Ether utilization has dropped back below 90%. Source: Tom Wan

“ETH utilisation has dropped back below 90% with borrow APY now at 1.9%. Since the rsETH LZ hack, wstETH and weETH deposits are down $1.2B and $1.76B respectively,” Wan said.

“With wstETH/weETH to ETH loops now back to profitable, the question is whether ETH loop demand returns or if the capital stays on the sidelines/flows to Spark/Morpho,” he added.

Kelp sunsetting rsETH bridging on some networks

Meanwhile, Kelp DAO is also in the process of its own recovery efforts. On Sunday, the protocol said it’s “consolidating our supported networks to ensure the highest security standards for rsETH based on usage and integrations,” by sunsetting rsETH bridging in select networks after June 15, including Optimism, HyperEVM, Unichain, Avalanche and MegaETH. 

Related: Aave files emergency motion to lift restraining notice on frozen ETH

After the deadline, recovery of funds will cost 100 USDC (USDC) per address, according to Kelp.

Earlier this month, Kelp DAO migrated its restaking token, rsETH, to the Chainlink oracle platform while continuing to blame the attack on LayerZero’s cross-chain infrastructure, its previous provider. 

Magazine: The legal battle over who can claim DeFi’s stolen millions

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• Aave
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