Overview
- Aave’s service providers filed a governance proposal Friday to transfer 25,000 ETH to the DeFi United fund, with the allocation pending a DAO vote.
- Pledges now stand near 69,534 ETH from contributors including Lido, EtherFi, and Golem, while Mantle has proposed a 30,000 ETH credit line that could cover any remaining gap.
- The crisis began April 18 when a KelpDAO bridge flaw let an attacker mint 116,500 unbacked rsETH and borrow nearly $191 million on Aave, triggering heavy withdrawals and a steep DeFi TVL slide.
- Aave paused rsETH markets across multiple networks to stem risk, Arbitrum froze 30,766 ETH tied to the exploiter, and on-chain sleuths say roughly 75,700 ETH was swapped into Bitcoin through THORChain.
- Votes across Aave and partner DAOs will decide whether rsETH’s backing is fully restored and how much of Mantle’s facility is tapped, a key test of coordinated bailouts and the risk of moral hazard in DeFi.