Thanks to the decisive voice and leadership from
@aave, for the first time in DeFi history, a joint relief alliance was urgently formed to deal with the aftermath of a large-scale attack.
This is proof of the ecosystem's maturity, as major players who were once rivals are now willing to come together.
1. What is DeFi United and how was it formed?
DeFi United is a temporary alliance of major protocols formed right after the
@KelpDAO exploit on April 18, 2026.
The attack exploited a cross-chain bridge flaw, allowing fake rsETH to be minted and used as collateral to borrow real ETH, creating ~$190-230m bad debt on Aave and Compound.
The initiative was led by Aave founder Stani Kulechov, calling for support to cover ~116,500 rsETH and contain systemic risk.
2. Key participants
The alliance includes major players across the ecosystem:
Protocols & DAOs:
-
@aave DAO (25,000 ETH)
-
@Mantle_Official (30,000 ETH credit line)
-
@ether_fi (5,000 ETH)
-
@LidoFinance (2,500 stETH)
Along with
@ethena,
@golemproject,
@Ink Foundation, and
@bgdlabs.
Infrastructure & organizations:
-
@Consensys &
@Sharplink (30,000 ETH)
-
@arbitrum DAO (froze ~30,766 ETH)
-
@SolanaFndn
-
@circle
Individuals:
-
@StaniKulechov (5,000 ETH)
-
@justinsuntron (20m USDT)
Community: Over 116,000 wallets contributed.
3. Goals and current progress
Main goals:
- Restore rsETH value by injecting real ETH to bring the ratio back to ~1 rsETH ≈ 1.07 ETH.
- Resolve hacker positions through oracle adjustments and controlled liquidation of ~107,000 rsETH.
- Reopen markets across chains and normalize risk parameters.
Current progress:
- Raised ~132,649 ETH (~$303m), covering 148% of bad debt.
- Aave has shared the execution plan, pending governance approval.
- Large portion of funds recovered, including 30k ETH from Arbitrum and 73k ETH by KelpDAO.
- User compensation starts April 30, 2026 via
aave-compensation.com.
Overall view
The response has been strong, and Aave’s TVL is already recovering.
From my pov, this is a turning point. It shows DeFi can coordinate and handle crises without relying on external bailouts, which is something the space has been trying to prove for years.
At the same time, the root issue is still there.
Cross-chain bridges remain one of the weakest points, and without better security, similar incidents can happen again.