🔓 rsETH Recovery Nearly Complete: Final Tranche Coming Monday
🔓 rsETH Recovery Nearly Complete: Final Tranche Coming Monday
🎯 rsETH Recovery: Final Stretch
Major Progress in rsETH Recovery
Kelp DAO has sent the second-to-last batch of rsETH to the LayerZero lockbox, with the final amount scheduled for Monday. This will fully restore rsETH's backing after the April 18 bridge exploit.
Current Status:
- WETH loan-to-value ratios restored to pre-incident levels
- All Aave markets operating normally
- rsETH bridging between mainnet and L2s fully functional
- Users can withdraw rsETH across all affected markets
Recovery Timeline Recap:
- May 12: Exploiter's rsETH burned on Arbitrum
- May 13: First tranche transferred, bridging reopened
- May 14: rsETH withdrawals enabled
- May 17: WETH LTVs restored across all markets
- May 22: Second-to-last batch sent
The coordinated "DeFi United" effort involved contributions from multiple protocols and successfully navigated legal complications, including a court-modified restraining notice on Arbitrum DAO funds. The recovery demonstrates cross-protocol collaboration in addressing DeFi incidents.
Aave service providers and ecosystem partners have established a recovery fund that factors in pending DAO votes, including the Arbitrum governance vote, indicative agreements, and successful execution to restore rsETH’s full backing. We are DeFi United, and resolving this for
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…
After discussions with several stakeholders, Aave service providers, @Ether_fi, @KelpDAO, @LayerZero_Core, @compound_xyz, and others have submitted a governance proposal to the @arbitrum DAO requesting the release of ETH frozen by the Arbitrum Security Council following the April
Thanks to @LayerZero_Core, who has been actively engaging with Aave and the broader DeFi United movement since the moment the rsETH incident occurred. Their contribution advances our plan to restore rsETH's backing and normalize market conditions.
LayerZero Labs is pledging more than 10,000 ETH to @Aave-led DeFi United efforts. We are: • Donating 5,000 ETH to DeFi United • Depositing an additional 5,000 ETH to strengthen Aave markets liquidity • Strategically deepening GHO liquidity
The first set of steps in the rsETH technical recovery plan are complete, including burning the exploiter's rsETH on Arbitrum. Progressively refilling the LayerZero OFT adapter and reopening rsETH operations will follow over the coming days.
Kelp and Aave have successfully completed a series of steps for rsETH backing, including burning the exploiter’s rsETH on Arbitrum. 117,132 rsETH will be progressively refilled from Aave Recovery Guardian and Kelp Recovery Safe into the LayerZero OFT adapter on mainnet over the
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
Thanks to the 1,600+ addresses representing over 190 million ARB tokens who have voted on unfreezing the ETH related to the April 18 rsETH incident, currently held by the Arbitrum DAO. Reaching quorum with a strong show of approval from delegates and the Arbitrum community is a
The first tranche of rsETH has been transferred into the LayerZero OFT adapter, and rsETH bridging between mainnet and L2s is back open.
Quick update: The first tranche of rsETH has been transferred by @aave into the LayerZero OFT Adapter per the coordinated restart plan agreed with Kelp. Bridging is now resumed. Users can move rsETH in and out of L2s from mainnet freely now. 1. rsETH contracts will be
In accordance with the rsETH technical recovery plan, WETH LTVs on Aave V3 Ethereum Core, Ethereum Prime, Arbitrum, Base, Mantle, and Linea have been restored to their pre-incident values. WETH now operates as normal across all affected V3 deployments.
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
Aave service providers have published an Aave DAO governance proposal to contribute 25,000 ETH to the ongoing DeFi United effort. Aave DAO's ETH contribution would go towards the plan to restore rsETH's backing to try and normalize market conditions as quickly as possible. DeFi
Update on Arbitrum DAO proposal: On May 1, plaintiff-judgment creditors in an unrelated matter served a restraining notice on Arbitrum DAO targeting the ETH immobilized after the rsETH incident. A few days later, Aave LLC filed an emergency motion to vacate. On May 8, the court
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.
rsETH is now unpaused on Aave's Ethereum Core, Arbitrum, Base, Linea, and Mantle markets enabling users to withdraw rsETH.
rsETH withdrawals are now live. Bridging and claims are active too, as part of the coordinated restart plan. Exchange rates will be updated around 4:30pm CET on May 15th, along with eigen claims. This should reflect all staking rewards accrued to rsETH holders during the pause.
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
The proposal to release the ETH frozen by the Arbitrum Security Council to DeFi United has moved to Snapshot for its first round of voting. These funds would support efforts to restore rsETH’s backing and normalize market conditions. snapshot.org/#/s:arbitrumfo…
The second-to-last batch of rsETH has been sent to the rsETH LayerZero lockbox by @KelpDAO. The remaining amount will be sent on Monday, fully restoring rsETH's backing. Reminder: WETH LTVs were reset to pre-incident values, and all Aave markets are now operating normally.
In line with the technical plan outlined below, the attacker's rsETH positions on Aave have been liquidated on Ethereum and Arbitrum. The liquidated collateral now sits with the Recovery Guardian as specified in the AIP. No other users were affected, and Umbrella was also
x.com/i/article/2048…
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