Aave is leading a coordinated recovery effort after a significant hack, raising about $303 million to support affected users. The initiative, called 'DeFi United,' aims to restore normal market conditions in decentralized finance.
Key points
Aave is at the center of a recovery effort after a significant hack
The initiative is called 'DeFi United'
Approximately $303 million has been raised in commitments
The Kelp DAO exploit affected rsETH markets
The response is one of the most coordinated in DeFi history
In the often-fractured world of decentralized finance, crises tend to expose fault lines. This time, they’re also revealing an unusual level of coordination.
Aave, one of DeFi’s largest lending protocols, is at the center of a broad recovery effort following losses tied to the Kelp DAO exploit, drawing in capital and credit commitments from across the industry. The effort, informally dubbed “DeFi United,” has raised about $303 million in commitments as of Monday, according to its website, with much of the capital still pending governance approval.
The exploit, which rippled into rsETH markets and created risk across lending positions on Aave, has prompted what is shaping up to be one of the most coordinated industry responses to a DeFi incident.
“There’s a shared priority around supporting users and restoring normal market conditions,” an Aave Labs spokesperson told CoinDesk. “Many of these participants are deeply connected to DeFi, whether through infrastructure, capital, or user access, and have a direct interest in ensuring markets function as expected.”
Top contributors for the 'DeFi United' fund (DeFiUnited/CoinDesk)
Top contributors for the 'DeFi United' fund (DeFiUnited/CoinDesk)
But the response has quickly extended beyond Aave, and in some cases began with direct outreach.
Following the April 18 bridge hack that impacted rsETH, Kulechov reached out to Consensys and other ecosystem participants early to help coordinate a response, according to a Consensys spokesperson.
The firm, alongside its founder Joseph Lubin, agreed to commit up to 30,000 ETH in financial support to help advance the recovery and protect users. Sharplink played a strategic advisory role in those discussions, the spokesperson said.
“The Ethereum ecosystem has always been at its best when it moves together,” Lubin said in a statement. “DeFi United is exactly that, a broad, coordinated response to protect users and strengthen the infrastructure we’ve all helped build. Consensys is proud to contribute alongside other stewards in the ecosystem.”
The effort has also drawn smaller contributions from across the community.
The list of participants continues to grow. Entities that have not publicly specified the size of their commitments include Ethena, LayerZero, Frax Finance, and Ink Foundation, alongside Tyro.
“These are long-standing Aave relationships across the ecosystem,” the Aave Labs spokesperson added. “Teams like Consensys, Sharplink, and others have been in close contact throughout.”
Not all contributions are structured the same way. Some participants are offering grants, others deposits, and several are extending credit lines, highlighting different approaches to balancing support with risk management.
Much of the capital remains subject to governance approval, and several proposals are still under discussion. Even so, the breadth of participation underscores how widely the exploit's impact has been felt across DeFi.
“The Ethereum ecosystem has always been at its best when it moves together,” Lubin said. “DeFi United is exactly that: a broad, coordinated response to protect users and strengthen the infrastructure we’ve all helped build.”
