Aave, partners launch 'DeFi United' to address Kelp DAO hack

Cryptocurrency lending protocol Aave (AAVE) has launched a joint response with DeFi partners to address the aftermath of the Kelp DAO hack, CoinDesk reported. The initiative, dubbed "DeFi United," aims to restore the stability of rsETH. To support this effort, Lido Finance has proposed allocating up to 2,500 stETH ($5.7 million) to a dedicated relief fund. Ether.fi and Aave founder Stani Kulechov have also each proposed contributing 5,000 ETH. The hack involved an attacker minting uncollateralized rsETH and using it as collateral to borrow approximately $190 million, which triggered a mass withdrawal event. The current response is focused on stabilizing the system rather than recovering the funds.