Arbitrum governance discusses unlocking $71M in ETH to aid hacked Kelp DAO

Following a hack that left Kelp DAO with a collateral deficit of approximately 76,127 rsETH, Arbitrum governance is now considering a response. Voters are reviewing a proposal to unfreeze 30,765 ETH, valued at around $71 million, that had been locked by the security council, and to allocate the funds toward recovery efforts. The rsETH asset is currently severely undercollateralized. However, the ecosystem's recovery is expected to accelerate if the funds from Arbitrum are combined with a 43,000 ETH donation from DeFi United. The proposal is seen as a collaborative effort among DeFi protocols to contain the fallout from the hack and restore user confidence.