AAVE-Led DeFi United Cleans Up Kelp Hack
Tech AAVE-Led DeFi United Cleans Up Kelp Hack A rare example of solidarity is being witnessed in the DeFi sector: The DeFi United coalition led by Aave has activated a comprehensive technical plan to clear the bad debts remaining from the Kelp DAO hack and re-establish the collateral behind rsETH tokens. The 116.500 rsETH stolen in the North Korean hackers‘ attack on April 18 represented 18% of the circulating supply, and these tokens were used as worthless collateral in AAVE detailed analysis and Compound protocols. The coalition plans to convert the committed ETH into rsETH in controlled stages to liquidate the hackers’ positions, followed by liquidations via governance-controlled oracle price adjustments. Under the plan, approximately 13.000 ETH from Aaves Ethereum and Arbitrum markets and 16.776 ETH from Compound are targeted for recovery. Kelp DAO Hack Details and Coalition Support The attackers had borrowed 82.650 WETH and 821 wstETH by posting 89.567 unsupported rsETH as collateral; this move put the protocols at serious risk. While the Arbitrum Security Council has already frozen 71,5 million dollars tracked to hacker addresses, the coalition has reached a total commitment of 303 million dollars in capital and credit as of Monday. Consensys and Joseph Lubin pledged support up to