Aave Recovery Fund Nears $160M After KelpDAO Exploit

Aave is leading one of DeFi’s biggest coordinated rescue efforts after raising nearly $160 million, roughly 80% of the $200 million needed, to cover bad debt created by the KelpDAO exploit.

The recovery initiative, known as DeFi United, aims to recapitalize the ecosystem and stabilize rsETH, the yield-bearing token at the center of the attack.

Major support has come from Mantle, Aave DAO, and founder Stani Kulechov, who personally pledged 5,000 ETH to the fund. The exploit exposed vulnerabilities in interconnected DeFi lending structures, where losses can quickly spread across protocols.

However, the rapid capital response also demonstrates how mature DeFi ecosystems are increasingly capable of mobilizing treasury capital and strategic partnerships to contain systemic shocks, protecting broader market confidence.

Source: X.com

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