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

According to DeFi United and Aave-linked updates, more than 132,000 ETH was raised to address bad debt from the Kelp DAO exploit, while final recovery execution still depends on a vote, an indicative agreement and implementation.

ETH
AAVE
RSETH

Fact Check
The claim is well supported by official-source evidence. In x post 2048749676459884804, Aave says Consensys and Joseph Lubin joined DeFi United with up to 30,000 ETH for the rsETH recovery effort. In x post 2048753507105173515, Stani Kulechov independently confirms that Consensys and Joseph Lubin are joining with 30,000 ETH to fully back rsETH. The contingency language in the claim is also directly supported by x post 2048193607979454681, where Stani says the recovery fund has been reached to fully back rsETH, but this remains pending votes, indicative agreements, and successful execution. The crypto.news article is consistent with these official posts. The only mild uncertainty is that the phrase 'new report' is not itself established as a primary source here, but the substantive factual content of the claim is supported.
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Summary

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.

Terms & Concepts
  • rsETH: A liquid restaking token representing restaked Ether while remaining transferable and usable across DeFi applications.
  • LayerZero: A cross-chain messaging protocol that allows assets or data to move between different blockchain networks.
  • Aave: A decentralized lending protocol where users supply crypto as collateral and borrow other assets against it.