DeFi United: Major Protocols Pool Tens of Thousands of ETH to Rescue Aave
BinanceEXCHANGEFollowing the Kelp exploit, leading DeFi protocols have banded together under the DeFi United initiative, committing tens of thousands of ETH to restore rsETH backing and stabilize Aave.
DeFi ecosystem rallies behind Aave after Kelp exploit
The largest lending protocol Aave has coordinated a sweeping response with top DeFi platforms following the April 18 attack on Kelp. The collective effort, branded DeFi United, aims to restore the backing of the rsETH token that was at the center of the exploit.
«Aave service providers have been leading the DeFi United effort to restore rsETH's backing since the April 18 incident. We believe ecosystem collaboration matters most in moments like this, and our priority is achieving the strongest possible available outcome for users» — Aave (@aave), original post
Why it matters
The Kelp hack triggered a massive flight of capital from Aave — total deposits shrank by $17.2 billion. The protocol's TVL dropped to $14 billion from over $26 billion prior to the incident. Without a coordinated industry response, user losses and downstream damage to related products risked spiraling further. DeFi United represents an unprecedented case of collective mutual aid across decentralized finance.
Who is contributing and how much
Several major players have already announced concrete commitments:
- EtherFi Foundation — 5,000 ETH (~$11.5 million), directed toward a dedicated relief vehicle to protect users and prevent bad debt across DeFi.
- Stani Kulechov (Aave founder and CEO) — a personal contribution of 5,000 ETH.
- Lido — a DAO proposal to allocate up to 2,500 stETH (approximately $5.8 million) to cover the wrapped ether shortfall.
- Golem Foundation — 1,000 ETH.
- Mantle — discussions around a 30,000 ETH loan facility to Aave DAO, structured over three years and secured by tokens plus 5% of the protocol's revenue.
«The EtherFi Foundation is proposing to contribute 5k ETH to the rsETH dedicated relief vehicle. This vehicle will protect users and prevent bad debt across DeFi» — ether.fi Foundation (@ether_fi_Fdn), original post
«Aave is my life's work and we're working nonstop to find the best possible outcome for users. I'm personally contributing 5000 ETH to DeFi United as we continue working together with partners on formalizing more commitments» — Stani (@StaniKulechov), original post
Lido's team emphasized that their ecosystem has a direct stake in a coordinated, targeted response. Inaction, according to the proposal authors, would likely increase losses for EarnETH vault depositors and amplify negative consequences for stETH-linked products and liquidity venues.
«Following this week's rsETH incident involving @KelpDAO and @LayerZero_Core, a proposal has been put forward for Mantle to contribute a loan facility to @aave's coordinated relief effort» — Mantle (@Mantle_Official), original post
Beyond these contributors, Ethena, LayerZero, Ink Foundation, Tydro, and Frax Finance have also joined the initiative.
Current state of Aave and market reaction
On-chain analyst EmberCN noted that after DeFi United secured 30,000 ETH in loans and 13,500 ETH in contributions, the outflow of funds from Aave came to a halt. Total deposits stood at $28.6 billion at the time of his observation — down $17.2 billion from pre-incident levels.
«在 Aave 协调建立 "DeFi United" 用于恢复救助，并获得 3 万 ETH 借款、1.35 万 ETH 捐款后，对信心恢复确实起到了比较明显的效果» — 余烬 (@EmberCN), original post
The AAVE token responded positively, gaining nearly 2% over the preceding 24 hours and trading around $93.3 at the time of writing.
Community support
DeFi United drew broad praise from the community. MetaMask developer Taylor Monahan voiced her support for those who stepped up to take action, saying she was proud to watch the effort unfold.
For context, on April 21 the Arbitrum Security Council took emergency measures and froze 30,766 ETH (~$71.2 million) stolen from Kelp.
Frequently Asked Questions
What is DeFi United and why was it created?
DeFi United is a coordinated effort by major DeFi protocols launched after the Kelp exploit on April 18, 2026. Its goal is to restore the backing of the rsETH token and stabilize the Aave protocol, which suffered massive deposit outflows following the attack.
How much ETH has been raised for Aave's recovery?
DeFi United has secured 30,000 ETH as a potential loan from Mantle and 13,500 ETH in direct contributions. Key contributors include EtherFi Foundation (5,000 ETH), Stani Kulechov personally (5,000 ETH), Lido (2,500 stETH), and Golem Foundation (1,000 ETH).
How did the Kelp hack affect Aave's TVL?
Aave's TVL dropped from over $26 billion to $14 billion. Total deposits fell by $17.2 billion to $28.6 billion. After DeFi United was established, the outflow of funds reportedly stopped.
What happened to the AAVE token price after DeFi United launched?
The AAVE token rose nearly 2% within 24 hours of the announcement. At the time of reporting, it was trading around $93.3.
Which protocols joined DeFi United?
Beyond Aave, EtherFi, Lido, Golem Foundation, and Mantle, the initiative also includes Ethena, LayerZero, Ink Foundation, Tydro, and Frax Finance.
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