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Lido proposes to use up to $5.8 million in stETH to fill the Kelp funding gap
ME News Report, April 24 (UTC+8), Lido initiated a proposal to have the DAO allocate up to 2,500 stETH (about $5.8 million) to make up the rsETH asset gap caused by Kelp DAO’s recent attack. Lido stated that this LayerZero-based exploit has resulted in insufficient rsETH reserves and triggered a chain reaction across the DeFi ecosystem, including rising interest rate pressure, tightness in lending markets, and the risk of passive liquidation facing some leveraged strategies. The proposal emphasizes that this funding will only be used as part of a complete recovery plan, on the condition that the overall gap can be fully filled. Previously, the attack on Kelp DAO, worth about $292 million, had also spread to Aave, leading to bad debt issues, and its total value locked (TVL) fell by nearly $8 billion at one point. (Source: ChainCatcher)