{"id":96553,"date":"2026-04-28T10:58:30","date_gmt":"2026-04-28T07:58:30","guid":{"rendered":"https:\/\/u1f987.com\/en\/?p=96553"},"modified":"2026-04-28T11:02:18","modified_gmt":"2026-04-28T08:02:18","slug":"defi-united-initiative-raises-over-300-million-following-kelp-hack","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/defi-united-initiative-raises-over-300-million-following-kelp-hack\/","title":{"rendered":"DeFi United Initiative Raises Over $300 Million Following Kelp Hack"},"content":{"rendered":"<p>The total donations for ecosystem recovery following the <a href=\"https:\/\/u1f987.com\/en\/news\/kelp-protocol-loses-293-million-following-cross-chain-bridge-attack\">attack on Kelp<\/a> have exceeded 132,704 ETH (over $302 million). The funds raised by the <a href=\"https:\/\/u1f987.com\/en\/news\/defi-protocols-muster-tens-of-thousands-of-eth-to-shore-up-aave\">DeFi United<\/a> initiative have covered the $290 million damage caused by the hack.\u00a0<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/img-eea90c93105aa5ed-2964250269258774.webp\" alt=\"image\" class=\"wp-image-279098\"\/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/defiunited.world\/\">defiunited.world<\/a>.\u00a0<\/figcaption><\/figure>\n<p>The largest donors were Mantle (30,000 ETH) and <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-dao-decentralised-autonomous-organisation\">Aave DAO<\/a> (25,000 ETH). Additionally, ~30,700 ETH was recovered through the <a href=\"https:\/\/u1f987.com\/en\/news\/arbitrum-freezes-30766-eth-amid-probe-into-kelp-hack\">freezing of stolen assets<\/a> in <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-arbitrum\">Arbitrum<\/a>.\u00a0<\/p>\n<p>Aave founder <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-aave\">Stani Kulechov<\/a> donated 5,000 ETH. Ether.fi and Lido Finance contributed 5,000 ETH and 2,500 ETH respectively. Some assets came from community members.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/img-e1779ac711b2bc52-2964262779788024.webp\" alt=\"image\" class=\"wp-image-279099\"\/><figcaption class=\"wp-element-caption\">Source: defiunited.world.\u00a0<\/figcaption><\/figure>\n<p>On April 27, ConsenSys and its founder Joseph Lubin joined the fundraising effort. They will contribute 30,000 ETH.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Consensys is proud to join DeFi United alongside <a href=\"https:\/\/twitter.com\/aave?ref_src=twsrc%5Etfw\">@aave<\/a> with up to 30,000 ETH to support the rsETH recovery.<\/p>\n<p>The Ethereum ecosystem has always been at its best when it moves as one.<\/p>\n<p>DeFi United. <a href=\"https:\/\/t.co\/o2ow2Iv4NC\">https:\/\/t.co\/o2ow2Iv4NC<\/a><\/p>\n<p>\u2014 Consensys.eth (@Consensys) <a href=\"https:\/\/twitter.com\/Consensys\/status\/2048758840959578577?ref_src=twsrc%5Etfw\">April 27, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The Ethereum treasury SharpLink, supported by ConsenSys, will provide strategic advice to Aave.\u00a0<\/p>\n<p>The DeFi platform Compound is prepared to transfer up to 3,000 ETH. The final amount depends on the decision made by the project&#8217;s governance.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">A proposal for Compound to support DeFi United\u2019s coordinated rsETH recovery effort with a contribution of up to 3,000 ETH is now live.<\/p>\n<p>While Compound\u2019s direct exposure is expected to be limited, the proposal reflects a broader commitment to supporting the integrity of DeFi\u2026<\/p>\n<p>\u2014 Compound Foundation (@Compound_xyz) <a href=\"https:\/\/twitter.com\/Compound_xyz\/status\/2048865871096168838?ref_src=twsrc%5Etfw\">April 27, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The Avalanche Foundation <a href=\"https:\/\/x.com\/AvalancheFDN\/status\/2048794513355792806\">supported<\/a> the initiative. The Renzo project team <a href=\"https:\/\/x.com\/RenzoAI\/status\/2048780513880756624\">provided<\/a> over $10 million in liquidity to the <a href=\"https:\/\/u1f987.com\/en\/news\/what-are-stablecoins\">stablecoin<\/a> markets of Aave V3.<\/p>\n<h2 class=\"wp-block-heading\">Plan for rsETH Collateral Recovery<\/h2>\n<p>Aave developers shared a technical plan for the recovery of rsETH collateral. The collected funds will first be used to replenish the affected lockbox to restore the token to its original rate of 1.07 ETH.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"zxx\" dir=\"ltr\"><a href=\"https:\/\/t.co\/9eUfrt0ESE\">https:\/\/t.co\/9eUfrt0ESE<\/a><\/p>\n<p>\u2014 Aave (@aave) <a href=\"https:\/\/twitter.com\/aave\/status\/2048958367658332413?ref_src=twsrc%5Etfw\">April 28, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The project will forcibly liquidate the hacker&#8217;s positions in Aave and Compound. This will allow the recovery of approximately 13,000 ETH. Separate votes will be required for each network beforehand.\u00a0<\/p>\n<p>The <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-blockchain-oracle\">oracle<\/a> price of rsETH will be temporarily adjusted, and the received tokens will be transferred to the <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-multisignature-what-is-a-ring-signature\">multisignature<\/a> wallet of DeFi United.<\/p>\n<p>After the collateral is restored, the rate will be normalized. The recovered rsETH will be exchanged for ETH through the standard Kelp redemption procedure, and the obtained assets will be used to cover the deficit in Aave markets on the Ethereum and Arbitrum networks.<\/p>\n<p>Similarly, the attacker&#8217;s position on Compound will be addressed: DeFi United will provide liquidity to recover approximately 16,776 ETH.<\/p>\n<p>During the process, reserves of WETH and rsETH in Ethereum, Arbitrum, <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-base-coinbases-l2\">Base<\/a>, Mantle, and Linea will be frozen.<\/p>\n<p>Aave also noted that victims of the Kelp hack can verify compensation amounts on the Recovery Fund website. Payments will commence on April 30.<\/p>\n<blockquote class=\"twitter-tweet\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">rsETH Exploit victims now have the capability of viewing their compensation through the Recovery Fund website.<\/p>\n<p>The Payout process begins on April 30th. <\/p>\n<p>More details provided: <a href=\"https:\/\/t.co\/FhDGlXDNZ3\">https:\/\/t.co\/FhDGlXDNZ3<\/a> <a href=\"https:\/\/t.co\/m5POw9L3LD\">pic.twitter.com\/m5POw9L3LD<\/a><\/p>\n<p>\u2014 Aavvc (@aavces_) <a href=\"https:\/\/twitter.com\/aavces_\/status\/2049021584145306038?ref_src=twsrc%5Etfw\">April 28, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2 class=\"wp-block-heading\">Slowing Outflows\u00a0<\/h2>\n<p>Outflows from DeFi have paused amid measures to stabilize the ecosystem. <span data-descr=\"total value locked\" class=\"old_tooltip\">TVL<\/span> in the sector at the time of writing stands at $83.3 billion.<\/p>\n<p>The figure remains significantly below pre-hack levels, which exceeded $99 billion.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/img-6f089b57391a786a-2964337842768604.webp\" alt=\"image\" class=\"wp-image-279100\"\/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/defillama.com\/\">DefiLlama<\/a>.\u00a0<\/figcaption><\/figure>\n<p>A similar situation is observed with Aave: the protocol&#8217;s TVL remains around $14.1 billion. Over 10 days, the metric <a href=\"https:\/\/u1f987.com\/en\/news\/aave-experiences-over-16-billion-in-deposit-outflows-in-days\">declined<\/a> by $12 billion.\u00a0<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/img-4f30f009a43a5ef9-2964350585860903.webp\" alt=\"image\" class=\"wp-image-279101\"\/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/defillama.com\/protocol\/aave\">DefiLlama<\/a>.\u00a0<\/figcaption><\/figure>\n<p>Andrew Moss from Jefferies bank <a href=\"https:\/\/u1f987.com\/en\/news\/defi-hacks-cast-doubt-on-wall-streets-crypto-ambitions\">believes<\/a> that the series of hacks in the DeFi sector could dampen Wall Street&#8217;s interest in blockchain technologies.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The total donations for ecosystem recovery following the attack on Kelp have exceeded 132,704 ETH (over $302 million).<\/p>\n","protected":false},"author":1,"featured_media":96554,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Donations for ecosystem recovery after Kelp hack exceed 132,704 ETH ($302M).","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1212,1093],"class_list":["post-96553","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-aave","tag-defi"],"aioseo_notices":[],"amp_enabled":true,"views":"14","promo_type":"1","layout_type":"1","short_excerpt":"Donations for ecosystem recovery after Kelp hack exceed 132,704 ETH ($302M).","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/96553","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=96553"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/96553\/revisions"}],"predecessor-version":[{"id":96555,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/96553\/revisions\/96555"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/96554"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=96553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=96553"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=96553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}