Ethena Joins Multi-Protocol Effort to Restore rsETH Backing After Bridge Exploit
Ethena Joins Multi-Protocol Effort to Restore rsETH Backing After Bridge Exploit
🤝 DeFi rallies together
Recovery Effort Expands
Ethena has joined the collaborative effort to restore backing for rsETH following the April 18 Kelp DAO bridge exploit. The protocol now has multiple commitments from ecosystem partners including:
- Lido Finance (proposal submitted to DAO)
- EtherFi (proposal submitted to DAO)
- Ethena (latest contributor)
Current Status
- rsETH reserves paused across Ethereum Core, Arbitrum, Base, Mantle, and Linea
- WETH reserves on Ethereum Core V3 unfrozen; users can supply again
- WETH LTV remains at 0
- rsETH on Ethereum mainnet confirmed fully backed
Background
The incident stemmed from an exploit of Kelp DAO's rsETH bridge. Aave service providers immediately froze affected markets to prevent new deposits and borrowing. Analysis shows potential bad debt scenarios, with recovery plans now in progress.
Aave emphasizes that its contracts were not exploited - the issue originated with rsETH's bridge infrastructure.
Full incident report: governance.aave.com
Update on rsETH incident: rsETH reserves have been paused across Ethereum Core, Arbitrum, Base, Mantle, and Linea. This was done with the objective of recovering additional funds as the recovery plans progress. We will keep the community updated on the next steps as the
As we continue our efforts towards restoring rsETH's backing, @ether_fi has also stepped up to contribute and published a proposal to their DAO. EtherFi has been a great partner to the Aave ecosystem and we look forward to our continued collaboration with them. DeFi United.
The EtherFi Foundation is proposing to contribute 5k ETH to the rsETH dedicated relief vehicle. This vehicle will protect users and prevent bad debt across DeFi. More details in the proposal: snapshot.org/#/s:etherfi-da…
The rsETH markets on Aave V3 and Aave V4 have been frozen. Aave's contracts have not been exploited and this is an exploit related to rsETH. The freeze follows an exploit of the Kelp DAO rsETH bridge. Freezing the rsETH markets prevents new deposits and borrowing against rsETH
Update on rsETH incident: According to our analysis, rsETH on Ethereum mainnet is fully backed. Out of an abundance of caution, rsETH remains frozen across Aave V3 and V4 and exposure to the incident is capped. WETH reserves also remain frozen across affected markets including
Our work toward restoring rsETH's backing continues, with @ethena contributing to the ongoing effort. We're grateful for Ethena's longstanding commitment to Aave and DeFi. There's lots in store for Aavethena. DeFi United.
Ethena has been working closely with affected parties this week in a supporting capacity and is participating with a contribution into @aave's coordinated DeFi relief effort following the rsETH related incident. As part of a broader recovery initiative alongside other ecosystem
Update on rsETH incident: @LlamaRisk has published a report outlining the rsETH incident, the immediate actions taken, its impact on Aave, and potential paths forward. All service providers have been working to assess the two potential bad debt scenarios on the Aave protocol.
Aave service providers have been leading the DeFi United effort to restore rsETH's backing since the April 18 incident. We believe ecosystem collaboration matters most in moments like this, and our priority is achieving the strongest possible available outcome for users.
A proposal for Lido DAO to contribute to @aave’s coordinated rsETH relief effort has landed on the Research Forum following this week’s Kelp's rsETH LayerZero bridge exploit. The proposal authorizes a one-time, capped contribution of up to 2,500 stETH to a dedicated relief
Update on rsETH incident: WETH reserves on the Ethereum Core V3 market have been unfrozen and users can supply WETH to Ethereum Core V3 again. WETH LTV remains at 0. WETH reserves on Ethereum Prime, Arbitrum, Base, Mantle, and Linea remain frozen. Aave service providers will
Golem Project Contributes 1,000 ETH to rsETH Relief Effort
**Golem Project and Golem Foundation have donated 1,000 ETH** to support the ongoing rsETH relief initiative. - The contribution follows similar efforts from other DeFi protocols, including EtherFi, which recently submitted a proposal to their DAO - The relief effort aims to restore rsETH's backing - Multiple protocols are collaborating to assist affected users The coordinated response demonstrates growing solidarity within the DeFi ecosystem during crisis situations.
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Aave Pro Gets Enhanced Reserve Pages with Interest Rate Data and Supply Caps
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Aave Pro Interface Launches for V4 Protocol
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