Kelp and Aave Begin rsETH Recovery as Withdrawals Set to Resume

6h ago•

bullish:

bearish:

Kelp and Aave burned exploiter rsETH and began refilling 117,132 tokens over two weeks.
Withdrawals, deposits, and all rsETH operations resume within 24 hours of the first tranche transfer.
Security upgrades include four attestors, raised block confirmations, and migration to CCIP bridging.

Kelp DAO and Aave have completed the first critical steps of their recovery plan following the rsETH exploit that disrupted both protocols in April. The exploiter’s rsETH tokens on Arbitrum have been burned, and a structured refill process is now underway to restore full backing for the asset.

117,132 rsETH tokens will be progressively moved from the Aave Recovery Guardian and Kelp Recovery Safe into the LayerZero OFT adapter on Ethereum mainnet over the next two weeks. Both teams confirmed that rsETH remains fully backed at all times throughout the process.