Aave Backs Proposal to Release 30,765 ETH Frozen After rsETH Incident

• Aave said that service providers and partners submitted a proposal to the Arbitrum DAO to release 30,765.67 ETH that was frozen.
• The funds would go to DeFi United, a cross-protocol recovery effort aimed at restoring rsETH backing.
• The proposal said the Arbitrum Security Council froze the ETH on April 21 and moved it to a designated address.

Aave and several major DeFi groups have taken the rsETH recovery process to Arbitrum governance, asking the DAO to decide whether more than 30,765 ETH frozen after the exploit should now move into a coordinated remediation plan. The proposal shifts the next phase of the incident from emergency response to community decision-making.

Aave said in an X post that, after discussions with several stakeholders, service providers, including EtherFi, KelpDAO, LayerZero, and Compound, submitted a governance proposal requesting the release…

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