Kelp and Aave Complete rsETH Recovery Process After Exploit

**KelpDAO is discontinuing rsETH bridging support for 20 networks** after June 15, 2026, citing security standards and usage patterns. **Affected chains include:** - Optimism, Manta, Mode, Blast, Scroll - X Layer, zkSync, Zircuit, Swellchain, Hemi - Berachain, Sonic, HyperEVM, Unichain, TAC - Avalanche, Plasma Stable, MegaETH, Monad, Movement **Key deadlines:** - Bridge rsETH back to Ethereum mainnet by June 15 - Post-deadline recovery available for 100 USDC per address This consolidation follows recent security incidents, including a LayerZero exploit that resulted in $300M losses across DeFi. KelpDAO is migrating to Chainlink CCIP for enhanced cross-chain security. The protocol recently resumed full operations after pausing deposits and withdrawals, with all rsETH now fully backed across mainnet and remaining L2s.

**Major DeFi protocols collaborated to restore backing for rsETH**, KelpDAO's liquid restaking token built on Eigenlayer. **Key participants in the restoration effort:** - Lending protocols: Aave (with leaders Stani Kulechov and The3D_) - Stablecoin issuers: Circle, Ethena - Liquid staking: Lido Finance, Ether.fi - Infrastructure: Consensys, Mantle Network - Development: BGD Labs - Additional contributors: Golem Project, Ink Foundation, Tydro HQ, Frax Finance The initiative, dubbed **"DeFi United,"** also saw participation from thousands of individual community members. Ethena's contribution was specifically highlighted as part of their ongoing commitment to Aave and the broader DeFi ecosystem. The coordinated response demonstrates the interconnected nature of DeFi protocols and their willingness to collaborate during critical situations affecting ecosystem stability.

**Kelp and Mantle are hosting a Twitter Space on March 5 at 1 PM UTC** to discuss the recent growth in Mantle's DeFi ecosystem. The conversation will cover: - Factors driving DeFi expansion on Mantle - Kelp's rsETH integration and its role in the ecosystem - Future developments and plans This follows a previous AMA in September 2024 where Mantle discussed its Layer 2 positioning. [Join the Space](https://x.com/i/spaces/1MJgNgbZQNkGL?s=20)

**KUSD rewards are generated from actual payment and settlement activity**, marking a departure from typical crypto reward mechanisms that rely on token emissions or market speculation. **Key differentiator:** - Rewards stem from real-world transaction settlement - Activity continues regardless of market conditions - Payments process consistently in both bull and bear markets **Why this matters:** The reward structure demonstrates resilience across market cycles since payment settlement occurs daily, independent of crypto market volatility. This creates a more sustainable reward model tied to genuine economic activity rather than speculative trading. The approach suggests a shift toward utility-driven tokenomics in the liquid restaking space.