As recovery efforts accelerate in the DeFi ecosystem 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 proposes 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 restore 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.
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According to the proposal, the “DeFi United” initiative is not limited to Aave; Key representatives of the ecosystem such as EtherFi, Lido, Mantle, Ethereum and Golem Foundation also contribute to the process. It was also reported that Aave founder Stani Kulechov and several 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 the funds being frozen by the Arbitrum Security Council, there still remains a collateral gap in the system that needs to be closed.
*This is not investment advice.