The ECB kept interest rates on hold at its April 30 meeting, but Lagarde highlighted rising inflation and growth risks from the war in Iran, signaling the possibility of a rate hike in June.
KelpDAO announced on April 30 that it has completed its pledged contribution to the recovery fund, amounting to 2,000 $ETH in treasury funds to the DeFi United recovery plan led by Aave, aimed at restoring support for rsETH and promoting the system’s return to normal operation. The funding represents a one-time investment intended to restore rsETH to its nominal exchange rate following the $292 million exploit that struck on April 18.
“As part of that commitment, we are contributing 2,000 $ETH from our treasury directly to DeFi United,” said KelpDAO. The Protocol emphasized that its internal commitment was before any public statement that “rsETH holders will not be left behind,” noting that the contribution is a direct expression of that commitment.
Multi-protocol recovery effort
DeFi United, in collaboration with multiple ecosystem participants including Mantle, Consensys, Arbitrum, Lido Finance, and LayerZero, has formulated a recovery path that includes recapitalizing the bridging treasury, restoring oracle functionality, and addressing funding gaps in affected markets. The coalition has raised more than $302 million to date, much of which comes from DAOs and crypto companies within the ecosystem.
Major contributors include Consensys and Joseph Lubin with 30,000 $ETH (about $69 million), Mantle with 30,000 $ETH as a low interest loan, Aave DAO with a pending vote for 25,000 $ETH (about $57.5 million), and LayerZero with 10,000 $ETH (about $23 million). The Arbitrum Security Council also froze 30,766 $ETH (approximately $71 million) in attacker funds pending a board vote.
The April 18 exploit drained 116,500 rsETH – worth approximately $290 million to $293 million – from KelpDAO’s LayerZero-powered bridge, representing approximately 18% of rsETH’s total supply. The attacker used the tokens as collateral for Aave, Compound v3 and Euler to borrow an estimated $236 million. $ETH and WETH, leaving protocols with significant bad debt.
KelpDAO stated that its investment will help speed up the overall repair process, noting that as funds from various parties gradually become available, collateral support for rsETH will gradually return to normal. The company pledged to continue updating the community on progress as the recovery continues.