#AaveLaunchesrsETHRecoveryPlan


The Aave DAO’s launch of the rsETH Recovery Plan on April 26, 2026, marks a pivotal moment in DeFi crisis management following the April 18 bridge exploit. The exploit resulted in the minting of 116,500 unauthorized rsETH, creating a significant "bad debt" risk for Aave V3. To counter this, Aave has proposed a massive 25,000 ETH treasury allocation (approx. $58M) to the "DeFi United" recovery fund.
The plan is a multi-layered coordination between KelpDAO, LayerZero, and Aave, combining direct donations and liquidity support. Key contributions include 5,000 ETH from Stani Kulechov and a 30,000 ETH low-interest loan facility from Mantle. While the total pledged capital nears $161 million, the focus remains on permanent "loss absorption" to fully restore the rsETH peg. This proactive stance not only protects Aave's collateral integrity but also sets a new industry standard for how protocols can collaboratively neutralize systemic threats without relying solely on aggressive liquidations.
AAVE1.66%
ETH-1.37%
ZRO-6.34%
MNT-1.25%
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