The crypto community has demonstrated an unprecedented level of coordination. The DeFi United initiative has successfully raised over 132,704 ETH (approximately $302M) to restore the ecosystem following the high-profile exploit of the Kelp protocol. The total funds collected now exceed the $290M in direct damages caused by the attack.
Key Contributors to the Recovery Effort
The success of the fundraising campaign was driven by industry giants and the swift freezing of illicit assets.
| Donor / Source | Amount Contributed |
| Mantle | 30,000 ETH |
| ConsenSys & Joseph Lubin | 30,000 ETH |
| Frozen Assets (Arbitrum) | ~30,700 ETH |
| Aave DAO | 25,000 ETH |
| Stani Kulechov (Aave Founder) | 5,000 ETH |
| Ether.fi | 5,000 ETH |
| Lido Finance | 2,500 ETH |
Additionally, the Avalanche Foundation has backed the initiative, while the Renzo team provided over $10M in liquidity to Aave V3 stablecoin markets. The Compound platform is also considering a contribution of up to 3,000 ETH, pending a governance vote.
Technical Roadmap: Restoring rsETH Backing
Aave developers have released a detailed technical plan to return assets to their target parameters. The primary goal is to restore the rsETH exchange rate to its original peg of 1.07 ETH.
- Lockbox Replenishment: Initial funds will be directed toward restoring Kelp’s collateral reserves.
- Hacker Liquidation: Following governance votes across Aave and Compound networks, the attacker’s positions will be forcibly liquidated, returning approximately 13,000 ETH to the system.
- Oracle Adjustments: The rsETH oracle price will be temporarily modified to facilitate technical transactions, after which assets will be moved to the DeFi United multi-sig wallet.
- Deficit Coverage: Once collateral is restored, rsETH will be exchanged for ETH to fill liquidity gaps in Aave’s Ethereum and Arbitrum markets.
Note: WETH and rsETH reserves on Ethereum, Arbitrum, Base, Mantle, and Linea will be temporarily frozen during the stabilization process.
Information for Impacted Users
The Aave team confirmed that victims of the Kelp exploit can now verify their calculated compensation amounts via the Recovery Fund website. Reimbursements are scheduled to begin on April 30.
Market Reaction and DeFi Outlook
While the successful fundraise has halted the aggressive outflow of capital, the DeFi sector remains in a recovery phase. Current metrics reflect the significant stress on the ecosystem:
- Total DeFi TVL: $83.3B (down from over $99B prior to the exploit).
- Aave TVL: Holding at approximately $14.1B, following a $12B decline over the last 10 days.
Strategic consulting from SharpLink (supported by ConsenSys) and the influx of fresh liquidity provide a hopeful outlook for market stabilization as May approaches.
