Following a $290 million Kelp DAO exploit that created 116,500 unbacked rsETH tokens and rippled across Aave lending markets, a coalition of major DeFi protocols has raised approximately $303 million in commitments to restore full backing and eliminate bad debt. The DeFi United coalition, coordinated by Aave's Stani Kulechov with participation from Compound, Consensys, Lido, and others, represents one of the most coordinated industry responses to a DeFi incident. Major pledges include up to 250,000 ETH from Aave DAO, 30,000 ETH from Consensys and Joseph Lubin, and 30,000 ETH in credit facilities from Mantle, though much of the capital remains pending governance approval as of April 27, 2026. The technical plan proposes restoring rsETH backing with fresh ETH while systematically unwinding bad loans, with Aave Labs also seeking Arbitrum governance approval to release approximately 30,765.67 ETH immobilized by the network's Security Council.
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