$AAVE Aave has helped assemble about $317 million in ETH to recapitalize rsETH after a major exploit, significantly advancing recovery for Kelp DAO users and reducing risk on Aave.

The April rsETH exploit created around $190–230 million in bad debt on Aave, prompting a coalition called DeFi United that raised roughly 137k ETH (about $317 million) for recovery.

Recovery now includes burning attacker rsETH, refilling bridge backing so rsETH is again 1:1 with ETH, and resuming withdrawals, which stabilizes both Kelp DAO and Aave’s lending markets.

A court approved transfer of about $71 million in frozen ETH to Aave with legal strings attached, and rsETH security architecture is being overhauled, so users should still monitor peg and governance.