DeFi United Raises Over 100,000 ETH to Rebuild Aave Ecosystem After Kelp Exploit

A broad coalition of DeFi protocols operating under the DeFi United banner has accumulated more than 100,000 ETH — roughly $230 million — to address the fallout from the Kelp exploit that inflicted approximately $290 million in damages on the Aave ecosystem. The fund has nearly closed the gap left by the attack.

Major Contributors to the Recovery Fund

Mantle led the effort with a 30,000 ETH contribution, followed by the Aave DAO at 25,000 ETH. An additional ~30,700 ETH was recovered through the freezing of stolen funds on Arbitrum.

Aave founder Stani Kulechov personally donated 5,000 ETH. Ether.fi and Lido Finance contributed 5,000 ETH and 2,500 ETH respectively. The remaining balance came from community donations.

Aave and its partners established a dedicated fund aimed at restoring the full backing of the rsETH token. A governance vote on the next steps for the fund is currently underway.

"Aave service providers and ecosystem partners have established a recovery fund that factors in pending DAO votes, including the Arbitrum governance vote, indicative agreements, and successful execution to restore rsETH's full backing. We are DeFi United, and resolving this for…" — Aave (@aave), original post

Separately, the Kelp team launched its own compensation fund. Eligible users can submit claims through a dedicated form within a 24-hour window.

Why This Matters

The Kelp exploit ranks among the most damaging incidents in DeFi history, triggering a deposit exodus from Aave exceeding $12 billion. The ecosystem's ability to mobilize $230 million in a matter of days signals a level of maturity and collective resilience rarely seen in decentralized finance. However, as Andrew Moss of Jefferies has noted, this wave of DeFi exploits has called Wall Street's crypto investment plans into question.

Aave's Current Metrics

As of April 26, the decline in Aave's total value locked (TVL) had stabilized around $14 billion and showed early signs of recovery. Nonetheless, the protocol's deposits have shrunk by more than $12 billion since the exploit.

Analysts at aixbt labshighlighted a counterintuitive dynamic: during the crisis week, Aave generated an average of $1.7 million in daily fees — accounting for 63% of Ethereum's total revenue. According to their analysis, 100% utilization of the rsETH pool translates to maximum borrowing rates and, consequently, peak protocol revenue. In effect, Aave earned more money while under attack.

The future direction of the DeFi United fund hinges on the outcome of ongoing governance votes, including the Arbitrum governance proposal and the execution of preliminary agreements with ecosystem partners.