day six of rsETH: DeFi United received a commitment of about $100 million, but the shortfall remains at 50 million

Original title: Day 6 of the rsETH incident, DeFi United Plan received approximately $100 million in commitment
Original by ChandlerZ, Foresight News

The rsETH LayerZero bridge at Kelp DAO was attacked on April 18, and 11,655,000 rsETH (approximately $292 million) was found without authorization. The attacker then lent approximately $190 million worth of assets on Aave V3, and Arbitrum Security Council frozen 30766 ETH at the chain level。

The DeFi United, led by Aave and centred on cross-agreement solidarity, was then established with the goal of filling an overall gap of 1,220,000 rsETH (approximately $258 million)。

As of 24 April, several agreements had publicly expressed their participation in DeFi United, with a total commitment of approximately $100 million, although most were at the stage of DAO voting, forum discussions or earlier pre-discussions。

Funders and terms for amounts disclosed

Golem Foundation, together with Golem Factory, allocated 1,000 ETH (approximately $2.3 million) from the Treasury to restore rsETH collateral support and the orderly disposal of affected users. Golem indicated that it had worked closely with the Aave team, which was part of DeFi United cross-agreement collaborative risk management。

The founder of Aave, Stani Kulechov, committed 5,000 ETHs (approximately $11.5 million) in his personal capacity to support DeFi United, and Stani, in his tweets, stated that Aave was his life-long career and that the team was working hard to find the most user-friendly solutions and was working with partners to move forward with more funding commitments. Personal funding does not follow the DAO voting process and is a direct commitment。

The EtherFi Foundation authorizes the deployment of no more than 5,000 ETHs (approximately $11.5 million) from the DAO vault as a share of EtherFi in cross-agreement joint rescue to absorb user losses and prevent bad debts from being generated in the lending market such as Aave。

THE PROVISIONS ARE BINDING ON THE AUTOMATIC CESSATION OF THE PROCEEDINGS AFTER THE COMPLETION OF THE RESCUE, THE ARRIVAL OF THE ETH CEILING OF 5,000 OR THE TERMINATION OF THE SUBSEQUENT GOVERNANCE VOTE; THE PARTIAL RETURN OF THE UNUSED PORTION TO THE DAO VAULT; AND THE RETURN OF THE FUNDS TO DAO WITHIN THE AMOUNT OF THE CONTRIBUTION, IF SUBSEQUENTLY RECOVERED THROUGH LEGAL PROCEEDINGS, INSURANCE PAYMENTS OR CHAIN RECOVERY. THE FOUNDATION UNDERTOOK TO PUBLISH DETAILS OF THE RELIEF FRAMEWORK AND ALLOCATION MECHANISM WITHIN SEVEN DAYS OF THE ADOPTION OF THE PROPOSAL。

The Lido DAO proposal finances no more than 2,500 steh (approximately $5.75 million) to a dedicated rescue carrier to operate multiple wallets across the bridge through the Lido Labs Foundation. The allocation is released only if the relief fund is fully committed and fully covers the rsETH gap。

Lido argued that if only part of the gap was covered, the depositors in its EarnETH vault still faced up to 9000 ETH losses and refused to contribute unilaterally to some relief structures. The mandate of the rescue carrier is limited to filling the rsETH gap per se and is not used to support the secondary effects of warehouse health factors, secondary capital loss replacement, etc. The allocation was independent of the EGG 2026 budget and did not use or recover funds to return the original route to Lido Aragon Agent. The proposal has not yet entered the voting phase on the Aragon chain。

The Mantle draft proposes that Aave DAO be granted loans not exceeding 30000 ETH (approximately $69 million) for a maximum period of 36 months at the LIDO rate of return + 1 per cent APR without a penalty。

The clause requires Aave DAO to provide no less than $11 million in AAVE plus 5 per cent in future protocol income as collateral for the entry of money into Mantle's multiple-signed wallet, which has the first priority, and to delegate to Mantle the right to vote for 130,000 AAVE tokens. Mantle has positioned this in the draft as a fixed-income tool for pricing premiums during a crisis period, and hopes to promote the original deployment of Aave on the Mantle network。

Several other agreements have made public statements of participation but not yet disclosed amounts, including Ethena, LayerZero, INK Foundation, etc。

Aave has his own funds or can cover the bad debt ceiling

According to the current calculated commitment and overall shortfall, the remaining deficit of DeFi United is about $50 million, and even if external commitments stop at current levels, the Aave Agreement itself is sufficiently buffered. Aave ' s Treasury holds approximately $180 million in assets, Umbrella ' s security module holds approximately $56 million in insurance premiums, two totalling approximately $236 million, and has covered the upper limit of $123.7 million to $230.1 million in bad debts measured by Llama Risk。

Aave partially unfrozen the WETH market, which had previously been frozen on an emergency basis, and about $300 million in borrowing squeezing in the early days of the attack, with the AAVE token being more than 25 per cent in the preceding period, having stabilized. The systemic risk of an event has moved out of the most critical phase, in terms of both the self-help of the agreement and market sentiment。

However, Spark's strategist monetsupply.eth criticized Aave's decision to unfrozen the WETH market, arguing that it was poorly thought out and was mainly beneficial to revolving lenders. He noted that since Aave's core borrowing rate was limited to 5.15 per cent, the LST/LRT had a higher return under discounts and pledge proceeds, with a maximum of 14 times the leverage of revolving loans, the arbitrator received about 45 per cent of the annualized returns。

This strategy will result in a sustained 100 per cent utilization of the WETH market, preventing ordinary aWETH holders from taking collateral or refinancing high-cost debt positions in other markets. He further questioned the decision ' s preference for public relations advocacy rather than sound risk management, which had in fact worsened the situation of ordinary users who had been trapped in markets over the past few days。

0xngmi exposing three paths: Aave The scale of bad debts varies widely

The scale of bad debts actually required to be absorbed ultimately depends on KelpDAO ' s loss-sharing scheme. The founder of DefiLlama, 0xngmi, had a full digital evolution of three possible paths, each of which had a huge difference in impact on Aave。

Path 1: All rsETH holders reduce their losses proportionately. KelpDAO draws a flat reduction of 18.5 per cent for all rsETH holders, which corresponds to the share of 11.65 million rsETHs in total circulation that were found without authorization. Aave currently has about 666,000 rsETH as collateral, and most of the main network and L2 positions are close to the highest recycling leverage (95% liquidation LTV)。

Once the socialized loss has landed, the reduction of 18.5 per cent is well above the benefit buffer of approximately 5 per cent of the circulatory slot, and all the silos on the main network and L2 will be completely wiped out, resulting in large-scale peace. At 0xngmi, the bad debts that eventually settled in Aave were estimated at $216 million, or 13.5 per cent of the total collateral value。

The coverage structure for this portion of the bad debt is approximately $55 million for the Umbrella insurance module and another $85 million for the Aave Treasury, leaving a gap of approximately $76 million. KelpDAO can make up the difference by borrowing or selling AAVE tokens held by the Aave Treasury (current market value is about $51 million). The programme allows all users to share the loss and the impact on the Aave Single Market is manageable, but directly reduces the interest of rsETH holders。

Path 2: Abandon the L2 holder, secure the main network only. KelpDAO chooses to pay only the original value to the main web rsETH holder and treats rsETH on L2 as a worthless asset. Aave's rsETH collateral on L2 was approximately $359 million (at parities used in the current prophecies), and if all the warehouses were in the state of maximum recycling leverage, bad debts would expand directly to $341 million。

In this situation, the Umbrella insurance module cannot cover any L2 bad debts, and Aave can only use the treasury or external borrowing funds to save part of the market, with Arbitrum, Mantle, Base three-chain rsETH markets most likely to be abandoned and collapsed. The program has less direct impact on Aave's main network, but it could seriously damage the ecological credibility of L2 and could trigger a contraction of trust on the entire L2 restating track. For Mantle, the direct collapse of its own L2 market, its 30,000 ETH loan proposals, would be reversed。

Route three: The pre-attack snapshot is payable only to the original holder. KelpDAO attempts to pay only the full amount of the snapshot to the pre-attack rsETH holder, who subsequently buys or transfers itself. Theoretically, this reduces the loss to a minimum, but the actual implementation is extremely complex: after the attack, funds have been flowing significantly between the DeFi agreements, and the lending and liquidity pool is essentially a mixed pool that does not really distinguish between depositors in different instalments。

In specific bad debt calculations, hackers borrowed $124 million in the Aave main network and $18 million in Arbitrum, for a total of $142 million; net losses of approximately $91 million remained after the Umbrella coverage. The programme has the smallest theoretical loss, but is almost impossible to implement at the technical level, and the legal and community levels are equally prone to long-term controversy, with zerongmi judging its landing at very low probability。

The net loss of Aave in the three paths varied from $76 million to $91 million to $341 million in order of magnitude, and KelpDAO ' s choice of programme determined whether aave ultimately needed to use the entire public treasury。

The grant has been assembled around Aave, but the key to whether the program can be set up is held by KelpDAO。

On the afternoon of 23 April, KelpDAO issued a statement reaffirming the core principles that remain a priority for users, stating that the team and partners had made substantial progress on multiple routes over the past four days, and publicly thanking Arbitrum Security Council for freezing the chain of early intervention with SEAL 911. KelpDAO did not disclose specific programmes, schedules or loss-sharing details, but only undertook to continue sharing specific updates through official channels。

The current DeFi United rescue program is organized around Aave, and the underlying benchmark for each agreement's intent commitment structure is Road 1. Once KelpDAO moves to another path, the Mantle 30,000 ETH loan narratives, the EtherFi share with Lido, and even the whole rescue framework, need to be recalculated。

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