From Fractures to Coexistence: Honoring the DeFi Ecosystem's United Saviors Amid the rsETH Crisis

Taozhu, Golden Finance

Summary

Since the rsETH incident on April 18, the DeFi United ecosystem rescue operation led by Aave has been ongoing. Many ecosystem participants and individual contributors such as Aave DAO, Lido, Ethena, Ink Foundation / Tydro have generously contributed funds to help normalize the market.

According to data from the DeFi United official website, as of press time, there have been 126k transfers from 11.6 wallets, with a total fundraising amount of 102.5k ETH, equivalent to $245.59 million.

One, what is DeFi United?

DeFi United is a coordinated rescue effort initiated by Aave after the rsETH incident on April 18.

This effort brings together multiple ecosystem participants and individual contributors to increase rsETH’s liquidity reserves and restore market normalcy.

Early contributors to DeFi United include EtherFi, Lido, Mantle, Stani, Ethena, Ink Foundation / Tydro, Golem Foundation and Golem Project, Emilio, BGD Labs, and Ernesto.

Donated ETH will be used to support the recovery of rsETH’s liquidity reserves, helping multiple networks return to normal market conditions.

The recovery work is provided by third parties relying on DeFi United for technology and governance, but DeFi United cannot control the specific timeline or results.

Two, who are the donors?

1. Aave DAO (25,000 ETH, approved via vote)

On April 24, a service provider for Aave released a governance proposal to donate 25,000 ETH to the ongoing DeFi United project.

2. Aave founder Stani Kulechov (5,000 ETH)

On April 24, Aave founder Stani Kulechov stated that Aave is his “lifelong career,” and the team is fully responding to the current risk event. He announced he would personally contribute 5,000 ETH to participate in the “DeFi United” joint rescue plan. This plan aims to rally industry partners to fill collateral gaps, stabilize the market, and push for more commitments to quickly restore normal market operations.

3. Lido Finance (2,500 stETH, approved via vote)

On April 24, Lido Finance proposed a plan on the governance forum to provide a one-time injection of up to 2,500 stETH into the rsETH rescue plan led by Aave, to fill collateral gaps and reduce risks spilling over into the DeFi ecosystem.

The vote was ultimately approved. According to the proposal on the forum, 2,500 stETH was transferred from Aragon Agent to the Lido Labs Foundation’s multi-signature account.

4. EtherFi (5,000 ETH, voting in progress)

On April 24, EtherFi Foundation proposed donating 5,000 ETH to a dedicated relief mechanism. This mechanism aims to protect users and prevent bad debts in DeFi. The foundation believes that coordinated, full-ecosystem response measures are necessary to properly address the issue.

88.15% of voters opposed, only 11.85% supported. The vote will end on April 28, 2026, at 3:04 AM. Based on current voting trends, EtherFi Foundation’s proposal is unlikely to pass.

5. Mantle (30,000 ETH loan, no vote yet)

On April 24, Mantle core contributors proposed authorizing Mantle Treasury to provide up to 30,000 ETH in loans to Aave DAO.

The loan should be subject to binding terms:

• Principal: <30,000 ETH
• Borrower: Aave DAO (via Aave Labs or designated entity)
• Interest rate: LIDO +1% annual interest, or other terms negotiated and finalized by the execution team.
• Maturity: up to 36 months
• Early repayment: Borrower may decide whether to allow early repayment without penalty.

According to the guidelines outlined in Mantle’s management documents, the following protections should apply:

1. Collateral: All ETH under the loan will be allocated to a multi-signature wallet designated by Mantle, which Mantle has first priority lien and security interest in. Aave will also allocate an additional amount, including 5% of protocol revenue and Aave tokens with a market value of no less than $11 million, as collateral for the loan, distributed to the designated wallet or multi-signature SAFE. Mantle will hold the keys to this wallet or SAFE.

2. Default events: If a default occurs, including non-payment, bankruptcy of the borrower, breach of loan terms, etc., the loan will immediately mature and must be repaid.

3. Other protections: Mantle will be delegated 130,000 Aave tokens to participate in governance and voting within the Aave community.

6. Ethena (specific details not disclosed)

Ethena has not disclosed specific donation information, only stating:

This week, Ethena has been working closely with affected parties, providing support, and participating in @aave’s DeFi rescue effort related to rsETH.

As part of a broader recovery plan with other ecosystem participants, Ethena’s contribution will be used to restore rsETH’s liquidity support, to help stakeholders resolve issues in an orderly manner.

Aavethena.

7. Ink Foundation / Tydro (specific details not disclosed)

On April 24, Tydro’s official statement and Ink Foundation have not disclosed specific donation details:

Tydro and Ink Foundation are working together with @aave and other ecosystem participants to advance the DeFi rescue effort.

These donations aim to help affected parties, support orderly resolution of the lending institutions’ difficulties, and reduce bad debts.

Please stay tuned for further updates.

8. Golem Foundation, Golem Project (1,000 ETH, donated)

On April 24, Golem Foundation issued a statement:

Golem Foundation and Golem Factory will donate a total of 1,000 ETH from our treasury to support @aave’s DeFi rescue efforts following the rsETH incident.

This week, we have been working closely with the Aave team to provide support. Our donation will be used to restore rsETH’s liquidity support and help affected stakeholders resolve issues in an orderly manner.

We are pleased to work hand-in-hand with @aave and other ecosystem members to respond to this incident.

DeFi united.

9. Emilio (donated)

AAVE senior vice president Emilio posted:

I will donate 500 ETH to the DeFi United fund. This is a large portion of my crypto holdings, but some things are more important than money — like Stani, I have been involved in the development of Aave from the beginning, and my only concern is to see it succeed. There are no failures in life, only lessons. We will become stronger.

Aave will prevail.

10. BGD Labs (250 ETH, pledged)

On April 24, BGD Labs announced a donation of 250 ETH:

BGD will donate 250 ETH to the relief fund coordinated by @aave Labs to address the KelpDAO/LZ vulnerability.

BGD no longer uses Aave, but we support the protocols we once helped develop, and @aave Labs’ efforts to resolve issues outside of native Aave.

Note: BGD Labs is part of Aave’s core development team.

11. Ernesto (donated)

Co-founder of BGD Labs Ernesto announced a donation of 100 ETH:

I will donate 100 ETH to @aave Labs’ coordinated rescue effort for the KelpDAO/LZ vulnerability.

Although I am no longer involved in Aave, I still believe the Aave protocol is vital to the entire DeFi industry. Moreover, even if Aave itself was not attacked, the rescue efforts led by @aave Labs are worth supporting.

12. LayerZero (specific details not disclosed)

On April 26, LayerZero issued a statement of support but did not disclose specifics.

Aave service providers and ecosystem partners have established a recovery fund, funded by pending DAO votes (including Arbitrum governance votes), agreements reached, and successful recovery of rsETH support.

We are DeFi United, and addressing the issues faced by affected users and the broader DeFi ecosystem is our top priority.

We have reached technical agreement with @KelpDAO and @LayerZero_Core on the necessary steps for execution.

Work is currently underway.

Thanks to everyone who has contributed to DeFi United, and to the thousands of community members standing with us. The unity of the DeFi community is truly inspiring.

Final recovery plans, user steps, and updates will be released soon.

13. Frax (specific details not disclosed)

On April 24, Frax issued a statement of support but did not disclose specifics.

As a partner and long-term ally of Aave V4, Frax has today directly communicated with @aave to assist with the rsETH incident. Although Frax was not directly affected, we will work with DeFi United to jointly maintain the stability of the Aave market and the entire DeFi ecosystem.

Conclusion

With joint efforts from multiple parties, the $292 million hole caused by Kelp DAO being hacked has been filled by 84.11%, leaving about 15.89% (approximately $46.41 million) still to be filled.

For the entire DeFi sector, this DeFi United action demonstrates the industry’s confidence and determination to band together. The DeFi ecosystem is expected to fully recover from this black swan event.