Key Highlights
- Consensys and Joe Lubin will contribute up to 30,000 ETH to the rsETH recovery effort.
- The funds are intended to help rebuild collateral after the KelpDAO exploit.
- The attack affected about 116,500 rsETH, roughly 18% of the circulating supply.
Consensys, a blockchain software company, and Joseph Lubin, Consensys CEO and Ethereum co-founder, have joined DeFi United, a coordinated effort to restore full backing for rsETH after the April 18 bridge incident.
Both have committed up to 30,000 ETH in financial support, with Sharplink (SBET) giving strategic advisory.
According to an update shared by Aave on X, the contribution is a key part of the broader recovery plan aimed at stabilizing markets and restoring user confidence.
Bridge exploit drained 116,500 rsETH
On April 18, 2026, around 17:35 UTC, an exploit was launched against the cross-chain bridge of Kelp DAO, which uses LayerZero as its protocol. In the process of exploiting, the hacker created a fake inbound cross-chain transaction that convinced the bridge to transfer 116,500 rsETH without burning anything as collateral.
The total value of the lost tokens amounted to approximately 18% of the circulating supply of the token, and their monetary value was estimated to be approximately $292 million. The hacker used most of the stolen funds to provide collateral on prominent lending platforms, namely Aave V3. The total amount borrowed ranged from $196 million to $236 million.
Recovery effort gains momentum
The contribution speeds up the DeFi United Initiative, involving various affected protocols and networks whose governance approval processes are still going on. By providing substantial funds available immediately, the support enables the recovery to progress in parallel across funding, governance, and technical pathways, eliminating delays and helping stabilize market conditions.
Stani Kulechov, founder of Aave Labs, believes that financial support from these leading ecosystem participants makes funds available to the recovery effort without delay, and the recovery would not be progressing as it is without them. He added, “We are grateful for this meaningful contribution towards the goal of making rsETH holders whole and normalizing market conditions.”
Meanwhile, Joe Lubin commented on the development, stating, “The Ethereum technology and ecosystem are antifragile. Ethereum will continue to adapt and evolve to scale and broaden its scope while continuing to harden the foundations. The Ethereum ecosystem has always been at its best when it moves together.”
He added, “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.”
Step toward restitution
The 30,000 ETH commitment offers instant liquidity, allowing governance entities ample time to undertake the necessary formalities without rushing into any hasty decisions. To the rsETH stakeholders and those impacted by the situation, the update marks a step toward achieving their goals of restitution.
With governance voting continuing, the new DeFi United community, featuring the esteemed Ethereum custodians, serves as a good example in dealing with DeFi occurrences.
Also Read: Bitmine Adds 100K+ Ethereum, Boosts Holdings Past 5 Million
