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AAVE and Kelp seek $71 million worth of ETH release to rescue RETH
CryptoWorld News reports that AAVE Labs, Kelp DAO, and others have requested Arbitrum DAO to release 30,765.67 ETH to support the recovery plan for the Kelp DAO vulnerability. These assets were frozen by the Arbitrum Security Committee due to their association with the attacker, currently valued at around $71 million based on the current Ethereum price. The proposal directs the funds to DeFi United, aiming to help restore the economic support for RETH. If the recovery plan cannot continue as expected, the authors say they will return to Arbitrum governance to seek further instructions.
On X, Kelp DAO stated, “With each ETH released, RETH holders move closer to full recovery.” The proposal also mentions that the attacker deposited 89,567 RETH as collateral with AAVE, and borrowed 82,650 WETH and 821 WSTETH. AAVE confirmed that its smart contracts were not compromised, and the incident is viewed as an external attack rather than a failure of the AAVE system.
As the Arbitrum Constitution AIP process may take about 49 days, some representatives questioned whether this timeline is too long, which could affect users holding AAVE.