DeFi United Unveils rsETH Recovery Blueprint After $293M Kelp Bridge Exploit

DeFi United, the Aave-affiliated group, has published a technical plan to restore rsETH collateral backing after the April 18 exploit of the Kelp crosschain bridge, CoinDesk reported. The attack released 116,500 rsETH worth about $293 million at the time, without a corresponding burn on Unichain. Under the proposal, DeFi United would gradually convert committed Ethereum (ETH) into rsETH and deposit the tokens into the bridge's locked vault. The bridge would be able to return to normal operations once collateral coverage is rebuilt. Aave said LayerZero and Kelp have introduced additional security measures ahead of a full restart. DeFi United also intends to liquidate Aave and Compound positions tied to the attacker to recover collateral and mitigate market impact. It said seven attacker-linked addresses still have active rsETH-backed positions on Aave and Compound totaling roughly 107,000 rsETH, out of the 116,500 rsETH released. The execution sequence would temporarily adjust the rsETH oracle price to enable a controlled liquidation, move recovered collateral to the DeFi United multisig wallet, restore the oracle, redeem rsETH for ETH, and use the proceeds to close shortfalls in affected markets. The plan moves rsETH recovery efforts from commitments and public statements into a coordinated process that depends on governance approvals, temporary oracle changes and execution across multiple DeFi protocols. The outcome remains contingent on DAO votes, final protocol implementation and the attacker not disrupting liquidation steps. Ethereum backers add funding and support The technical proposal follows earlier fundraising and governance efforts. On Monday, ConsenSys and Ethereum cofounder Joe Lubin joined DeFi United, committing up to 30,000 ETH. Sharplink, an Ethereum treasury-listed company, joined as an advisor to help develop the recovery plan. The same day, Aave Labs asked the Arbitrum DAO to release 30,765 ETH that the Arbitrum Security Council froze after the attack and transfer the funds to DeFi United. DeFi United said it has secured more than $300 million in commitments. As of Tuesday, its website showed $302.26 million raised or pledged, equivalent to 132,706.903 ETH, with some pledges still subject to DAO approval and final execution.