KelpDAO Contributes 2,000 ETH to RsETH Recovery Plan

The recovery process after the KelpDAO-related rsETH crisis is picking up speed. KelpDAO has announced a major financial contribution: 2,000 $ETH, worth about $4.5 million. This money is part of the “DeFi United” rescue initiative.

The funds, according to the announcement, will support a recovery plan led by Aave. Many ecosystem players are involved. The main goal is to restore the rsETH peg. The system needs to return to normal operation. KelpDAO called this contribution a one-time investment. It is meant to directly help rsETH get back to its peg.

The DeFi United Initiative

The “DeFi United” initiative started after the hack on April 18th. It created a detailed recovery roadmap. Key stakeholders like Mantle, Consensys, Arbitrum, Lido Finance, and LayerZero are part of it. The plan aims to recapitalize bridge vaults, restore oracle systems, and close funding gaps in markets that were affected. This broad coalition shows how serious the incident was.

KelpDAO said that protecting rsETH investors is a priority. They stated, “rsETH holders will not be abandoned.” The 2,000 $ETH contribution is meant to be a concrete demonstration of this commitment.

What Happens Next

The project also announced that the rsETH staking mechanism will gradually return to normal. It will happen as funds become available. Updates about the process will be shared with the community regularly.