Aave DAO Proposes 25,000 ETH for rsETH Recovery After Kelp Bridge Incident

The ARFC proposal would add Aave DAO to a DeFi United (decentralized finance industry coalition) recovery effort after the April 18, 2026 Kelp rsETH bridge incident, which initially left a shortfall of about 163,183 ETH.

Summary

Aave DAO has published an ARFC proposal seeking to contribute 25,000 ETH to the recovery effort tied to the Kelp rsETH bridge incident on April 18, 2026. According to the source, the proposal would align Aave DAO with DeFi United (decentralized finance industry coalition) in addressing losses linked to the event. The reported shortfall was initially about 163,183 ETH, though the source says it was later reduced to an unspecified lower level. In decentralized finance, recovery plans like this are typically designed to restore confidence, limit contagion across interconnected protocols, and coordinate support from major ecosystem participants.

Terms & Concepts
  • Aave DAO: The decentralized autonomous organization governing the Aave protocol, where token holders help decide treasury use and protocol proposals.
  • ARFC: Aave Request for Final Comment, a formal proposal stage used to gather community feedback before potential governance action.
  • Bridge incident: A problem involving cross-chain infrastructure that moves assets between blockchains, often creating recovery and solvency challenges when funds are affected.