DeFi United raises $303M ETH to repay Kelp DAO rsETH theft

Published: 2026-04-28 03:30:57 |

DeFi United has amassed 132,650 ETH (about $303M) to repay losses from the April 18 Kelp DAO hack, targeting rsETH stolen from the Aave ecosystem. The plan aims to compensate victims and help restore Aave lending stability after attackers allegedly drained ETH via rsETH collateral. Key updates: Consensys pledged 30,000 ETH, while Arbitrum froze 30.765 ETH tied to the exploit. Governance approval to transfer the frozen funds is expected to take around 49 days, so full payouts remain dependent on votes across protocols including Mantle, Ether.Fi, and Lido. Avalanche Foundation also backed the effort, alongside Tron DAO and HTX support via Aave stablecoin liquidity. Traders should watch Aave liquidity conditions during the governance window. Market data shows stress easing: Aave USDT/USDC utilization fell to 92% from 100% the prior week. If governance passes, near-term liquidity could improve; delays keep tail risk elevated for AAVE and related market pricing. Technical context cited for AAVE: price near $97, RSI ~48 (neutral), while broader trend remains bearish (Supertrend bearish), with support around $94.7 and resistance around $100.9.

Neutral

This is a liquidity-support and repayment effort, so it can improve sentiment and reduce immediate tail risk for AAVE. The two most concrete positives are: (1) large capital raised by DeFi United and (2) partial immobilization of attacker funds via Arbitrum freezing, which can reduce further market strain. However, the event’s main uncertainty is timing. Full compensation depends on cross-protocol governance votes, and the transfer process is expected to take about 49 days. During that window, any delay can keep liquidity fragmentation elevated and limit how fast depositors return, which argues against a clear bullish move. The market signal provided (Aave USDT/USDC utilization down to 92% from 100%) supports stabilization, but it is not a complete resolution. With cited technicals for AAVE still leaning bearish, traders may treat this as a gradual risk-management catalyst rather than an immediate price trigger.