Aave reopened the Ethereum, Arbitrum, Base, Linea, and Mantle rsETH markets on May 14, 2026, again allowing token withdrawals and operations after being frozen for about three weeks due to the Kelp DAO hack.
countermeasure Returns access to users who had funds or collateral locked in rsETH This comes after Aave, Kelp DAO, and other protocols complete the initial stages of a recovery plan designed after the April 18 exploit. Bridging and billing are also active as part of the coordinated reset plan, and exchange rates are expected to be updated around 4:30pm CET on May 15th to reflect all staking rewards accrued to rsETH holders during the suspension.
In the past few weeks, advances have been made in both protocols. A recovery plan divided into several phases. In early May, Aave executed a liquidation of positions associated with the attackers and moved the recovered rsETH to wallets managed by Aave Recovery Guardian and Kelp Recovery Safe.
Subsequently, Kelp DAO confirmed the gradual replenishment of 117,132 rsETH to LayerZero’s OFT adapter, a mechanism used for token interoperability between networks. recovery There was also financial support from other actors in the ecosystem. Protocols such as Ether.fi, Lido, and Ethena have participated in informal recapitalizations to strengthen asset support and stabilize their systems following exploits.
According to a report by CriptoNoticias, the attack stemmed from a vulnerability in the Kelp DAO cross-chain bridge on the LayerZero infrastructure, which allowed 116,500 rsETH to be minted without backup and used as collateral for Aave V3, extracting nearly $200 million in wETH, resulting in a large amount of bad debt. This incident caused a large amount of liquidity to flow out.more than $5.4 billion in ETH was withdrawn and utilization reached 100%, forcing Aave to freeze its rsETH reserves. After the hack, rsETH lost its peg and fell below 0.86 ETH, but it is currently trading around 1.06 ETH, with Kelp DAO claiming it is recovering.
For users, reopening means funds are locked It will once again be available for withdrawal and closing of positions. But this episode also leaves an uncomfortable precedent for DeFi. Even protocols that are considered related within an ecosystem can be exposed to large-scale liquidity crises due to failures in their interconnected infrastructure. Normalization of rsETH Relieving immediate pressure on AaveHowever, the market is still evaluating how much damage this exploit has caused to trust in the industry.
(Tag translation) Aave (ETHLend)
