DeFi United Hits Recovery Target as Consensys, Solana, TRON Pledge Support
The DeFi United recovery fund has reached its target to fully back rsETH following a major exploit that caused significant bad debt on Aave. Key industry players including Consensys, Solana, and TRON have pledged substantial support, with contributions structured for immediate availability alongside ongoing governance processes. This milestone marks a crucial step in stabilizing the affected DeFi ecosystem and restoring confidence after the April 18 KelpDAO bridge exploit.
Aave founder Stani Kulechov said the DeFi United recovery fund has reached the level needed to fully back rsETH, subject to pending votes, indicative agreements, and successful execution, after a wave of new commitments over the weekend pushed the coalition past an initial 163,200 ETH shortfall.The milestone caps a frenetic stretch since the April 18 KelpDAO bridge exploit, which drained 152,577 rsETH from Kelp's LayerZero bridge adapter and saddled Aave with between $123.7 million and $230.1 million in bad debt, depending on how Kelp ultimately allocates losses across rsETH holders. Consensys, the company behind MetaMask, and Ethereum co-founder Joe Lubin have committed up to 30,000 ETH to the recovery effort, with Nasdaq-listed Sharplink joining in an advisory capacity, according to a press release viewed by The Defiant. The contribution is structured to make funds available immediately while standard governance processes for other contributors run in parallel.To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io
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