DeFi United Raises 132,000 ETH to Cover Kelp DAO Exploit Losses

DeFi United said it raised more than 132,000 ETH, valued at over $300 million, to cover bad debt tied to the reported Kelp DAO exploit, which was described as involving unbacked rsETH minted through LayerZero and then used on Aave. Backers included Circle Ventures, Consensys and Joseph Lubin, with Consensys and Lubin together providing 30,000 ETH, while earlier reporting also cited DeFi United in an rsETH recovery effort backed by up to 30,000 ETH. Aave founder Stani said funds raised so far are sufficient to fully cover the rsETH shortfall, but the recovery is not yet finalized because implementation still depends on a pending vote, an indicative agreement and successful execution. Aave also said Sharplink will continue to provide strategic advisory support.

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