Arbitrum DAO vote to reroute di Kelp hacker ETH go to Aave-led DeFi United
Arbitrum DAO dey vote to release 30.766 ETH wey dem move from Kelp DAO attacker go Arbitrum One address wey linked to Aave‑led DeFi United. The Arbitrum DAO vote don get strong momentum, wit 16.9M ARB vote “yes” for di first hour and no “no” votes report so far. Di vote go run till May 7.
As response to di Kelp exploit, Arbitrum Security Council lock about $71.1M worth of ETH usin emergency powers wey 9 out of 12 members approve. Di locked funds dey for one address wey need DAO approval to release, and dis don spark debate about centralization—even though di council talk say dem follow law‑enforcement direction to protect users.
Di main incident involve cross‑chain withdrawal of about 18% of Kelp’s rsETH (around $292M). Funds pass through Kelp bridge go lending platforms like Aave, Compound, and Euler, where assets borrow as WETH and other tokens, create estimated $236M debt. Contracts pause, and analysts flag possible links to Lazarus Group.
DeFi United don raise over $311M in ETH and stablecoins. If Arbitrum DAO vote pass, Arbitrum go be major contributor, fit improve sentiment about Aave‑linked lending risk management. Traders fit see short‑term relief for ARB and related DeFi markets, but attention go still dey on attacker attribution and remaining risk.
Bullish
If Arbitrum DAO vote wey succeed to redirect the Kelp hacker ETH go the Aave-led DeFi United plan, e reduce the chance say the seized funds go just dey idle or make long wahala. Strong early “yes” support plus clear redemption path fit improve feeling for ARB and carry over to how people dey see risk for Aave-linked DeFi. For short term, traders fit treat am as “damage control” and position to stabilise. But the incident details — big debt creation, paused contracts, and disputed attribution — keep tail risk high, so e limit how strong price fit react.