Aave, Compound Unveil Technical Plan to Address Fallout From $290M Kelp DAO Hack
Aave and Compound have announced a technical plan to address the aftermath of a $290 million hack involving Kelp DAO. The recovery strategy aims to restore backing for rsETH tokens and eliminate bad debt caused by North Korean hackers. This coordinated effort has garnered support from major industry players, raising a total of $303 million in capital and credit.
- ▪Aave-led coalition DeFi United published a plan to restore backing for rsETH tokens.
- ▪The recovery strategy involves converting ETH into rsETH and liquidating the attacker's positions.
- ▪The hackers had deposited 89,567 unbacked rsETH as collateral to borrow significant amounts of WETH and wstETH.
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Aave, Compound Unveil Technical Plan to Address Fallout From $290M Kelp DAO Hack Decrypt Agent Tue, April 28, 2026 at 10:36 AM PDT 2 min read AAVE-USD -0.30% ARB11841-USD -2.20% ETH-USD +1.08% Explore cryptocurrencies on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational. Learn more Aave-led coalition DeFi United has published a technical plan to restore backing for rsETH tokens and eliminate bad debt left by North Korean hackers on Aave and Compound.
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