LayerZero said it is coordinating with Aave (decentralized lending protocol), EtherFi, Ethena, Arbitrum (Ethereum scaling network), and Kelp as part of a broader response tied to rsETH backing.
LayerZero announced that it is contributing to an industry-wide effort to restore the backing of rsETH, a crypto asset whose support mechanism is at issue in the statement. The company said it has been coordinating with Aave (decentralized lending protocol) and other parties including EtherFi, Ethena, Arbitrum (Ethereum scaling network), and Kelp. The announcement points to a multi-project response involving lending, restaking, and interoperability participants, which is notable because restoring asset backing is typically important for user confidence, collateral quality, and broader decentralized finance market stability.