But Aave DAO has taken a significant step in the recovery of DeFi ecosystems as recovery efforts accelerate after the KelpDAO-related rsETH crisis, which is associated with an important part of its history. The DAO has proposed contributions of about 25,000 ETH (about $57 per cent) according to the new governance proposal presented to Aave community. The 8 million) to a joint recovery program called “DeFi United” has been linked. – ’.
This is part of a plan to strengthen the collateral structure of the rsETH asset and return market conditions as quickly as possible, Aave said. It is an initiative designed to close down the collateral gap in KelpDAO’s rsETH product, and protect users affected by this project.
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The idea suggests that the “DeFi United” initiative is not just Aave; large representatives of the ecosystem including EtherFi, Lido, Mantle, Ethereum and Golem Foundation are also contributing to the process. The co-operation of this coordination was also reported by Aave founder Stani Kulechov and several developer teams.
The April 18, 2026 hack, you may recall, shattered the balance between rsETH’s collateral on Ethereum and assets minted on other chains, creating a “non-performing loan” risk in many protocols such as Aave (Aav). Despite the fact that funds are frozen by the Arbitrum Security Council, a collateral deficit remains in the system which must be closed.
*This is not investment advice.
Thanks for reading Aave Takes Action to Resolve $290 Million Hack Crisis – Will Donate a Large Amount of ETH
