Major Players in the Crypto Industry Unite to Support Aave Users After Massive Hack

In the often-fragmented world of decentralized finance, crises can reveal underlying weaknesses. However, the current situation is also showcasing an unusual level of cooperation. Aave, a leading lending protocol in DeFi, is at the center of a large-scale recovery effort following significant losses due to the Kelp DAO exploit. This effort, informally known as 'DeFi United,' has gathered commitments of around $303 million as of Monday, according to its website, although much of this capital is still awaiting governance approval. The exploit, which affected rsETH markets and posed risks to lending positions on Aave, has prompted one of the most coordinated industry responses to a DeFi incident. 'There is a shared priority to support users and restore normal market conditions,' an Aave Labs spokesperson stated. 'Many of these participants have deep connections to DeFi, whether through infrastructure, capital, or user access, and have a direct interest in ensuring markets function as expected.' At the heart of this effort is Aave itself. A governance proposal outlines a plan for the DAO to allocate up to 250,000 ETH as part of the recovery. Aave's founder, Stani Kulechov, has also indicated that he will personally donate 5,000 ETH. Other contributors within Aave's network are also stepping in, including Emilio Frangella, Ernesto Boado, BGD Labs, and Marcelo Ruiz de Orlano. The response has quickly expanded beyond Aave, with some cases beginning with direct outreach. Following the April 18 bridge hack that impacted rsETH, Kulechov reached out to Consensys and other ecosystem participants to help coordinate a response. Consensys, alongside its founder Joseph Lubin, agreed to commit up to 30,000 ETH in financial support to help advance the recovery and protect users. Sharplink played a strategic advisory role in these discussions. 'The Ethereum ecosystem has always been at its best when it moves together,' Lubin said. 'DeFi United is exactly that - a broad, coordinated response to protect users and strengthen the infrastructure we've all helped build. Consensys is proud to contribute alongside other stewards in the ecosystem.' The effort has also drawn smaller contributions from across the community. Lido has proposed allocating up to 2,500 stETH, while EtherFi is discussing a 5,000 ETH plan aimed at supporting users and limiting bad debt across DeFi. Mantle has proposed a 30,000 ETH credit facility loan, adding to a growing pool of backstop liquidity. Compound has also put forward a proposal to give up to 3,000 ETH to the fund. Other contributions are taking the form of deposits into Aave itself. Babylon Foundation plans to deposit $3 million in USDT, while Renzo has supplied more than $10 million from its treasury. Circle Ventures is purchasing AAVE tokens, and additional deposits have come from entities including Avalanche Foundation, Solana Foundation, and Justin Sun, according to Aave Labs. The list of participants continues to grow, with entities that have not publicly specified the size of their commitments including Ethena, LayerZero, Frax Finance, and Ink Foundation, alongside Tyro. 'These are long-standing Aave relationships across the ecosystem,' the Aave Labs spokesperson added. 'Teams like Consensys, Sharplink, and others have been in close contact throughout.' Not all contributions are structured the same way, with some participants offering grants, others deposits, and several extending credit lines, highlighting different approaches to balancing support with risk management. In parallel, Aave Labs has put forward a proposal asking Arbitrum governance to approve the release of roughly 30,765.67 ETH immobilized by the network's Security Council into the coordinated remediation effort, with the goal of 'making affected rsETH holders whole' and restoring rsETH's backing. Much of the capital remains subject to governance approval, and several proposals are still under discussion. Even so, the breadth of participation underscores how widely the exploit's impact has been felt across DeFi. 'The Ethereum ecosystem has always been at its best when it moves together,' Lubin said. 'DeFi United is exactly that: a broad, coordinated response to protect users and strengthen the infrastructure we've all helped build.' Ian Allison contributed reporting.