Aave Asks Arbitrum to Unfreeze Stolen Kelp DAO Funds

Aave Labs has proposed that the Arbitrum decentralized autonomous organization unfreeze $73.5 million in Ether linked to the Kelp DAO attack. The funds are intended for 'DeFi United,' a new initiative aimed at restoring the value of the rsETH token and compensating its holders. The Arbitrum Security Council had previously frozen 30,765 Ether connected to the exploit. Aave Labs argues that directing these funds to the remediation effort will help normalize conditions for Arbitrum users and the broader ecosystem, significantly contributing to the restoration of Kelp DAO's restaked ETH (rsETH) token. This proposal has the support of several affected protocols, including Kelp DAO, LayerZero, Ether.fi, and Compound. The 'DeFi United' fund has already seen approximately $21 million in contributions from various entities, including Aave Labs CEO Stani Kulechov. Additionally, Arbitrum, Mantle, Ether.fi, and Lido have pledged over $215 million, pending governance approval. Aave itself was significantly impacted by the exploit, experiencing a substantial drop in total value locked and facing over $190 million in bad debt. Aave Labs estimates the recovery effort will take about 49 days and plans to return the funds if the recovery fails.

(Source：Cointelegraph)