ether.fi responds with 5,000 ETH to support the Kelp Compensation Fund: due to concerns over a hacker incident triggering a systemic collapse in DeFi systems

Deep Tide TechFlow News, April 29 — Mike Silagadze, CEO of ether.fi, posted on the X platform explaining the reason for the commitment to invest 5,000 ETH into the Kelp hacking incident recovery fund. He stated that there is a real risk of “destroying the entire DeFi ecosystem” in this incident. If Kelp goes bankrupt, the $1.5 billion worth of rsETH could be frozen for a long time, leading to a halt in the $30 billion Aave lending market, triggering a chain collapse of DeFi and CeFi, and he said “Compared to FTX, it all seems insignificant.” Mike Silagadze added that, while most institutions choose to retreat and leave it to lawyers, taking responsibility proactively and quickly raising funds to fill the gaps is a good choice to help avoid the worst-case scenario.

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