Aave-linked DeFi United unveils rsETH recovery plan after $293M Kelp exploit

DeFi United published a technical plan to restore rsETH backing and unwind attacker-linked DeFi positions after the $293 million Kelp exploit.

The Aave-linked recovery group DeFi United has published a technical implementation plan to restore rsETH backing after the April 18 Kelp bridge exploit released 116,500 rsETH, worth about $293 million at the time, without a corresponding burn on Unichain.

The plan would convert committed Ether (ETH) into rsETH in tranches and deposit the tokens into the affected bridge lockbox, allowing the bridge to resume normal operations once the backing is restored. LayerZero and Kelp have also implemented additional security measures before the bridge returns to full operation, according to Aave. 

In parallel, DeFi United plans to clear attacker-linked positions across Aave and Compound to recover collateral and resolve market impairments caused by the exploit. The group said seven addresses associated with the exploiter still hold active rsETH-backed positions on Aave and Compound, representing about 107,000 rsETH of the original 116,500 rsETH released in the incident.

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