DeFi Leaders Unite to Support Aave Users After Massive Crypto Hack, Pledging Hundreds of Millions

In the often-fragmented world of decentralized finance, crises often expose underlying weaknesses. However, the recent response to the Kelp DAO exploit has revealed a surprising level of cooperation and solidarity. Aave, a leading DeFi lending protocol, has become the focal point of a broad recovery effort following significant losses. This effort, dubbed 'DeFi United,' has garnered approximately $303 million in commitments as of Monday, according to its website, with much of the capital awaiting governance approval. The exploit, which affected rsETH markets and created risk across lending positions on Aave, has prompted a coordinated industry response. According to an Aave Labs spokesperson, 'There's a shared priority around supporting users and restoring normal market conditions. Many of these participants are deeply connected to DeFi, whether through infrastructure, capital, or user access, and have a direct interest in ensuring markets function as expected.' At the core of the effort is Aave itself, with a governance proposal outlining a plan to allocate up to 250,000 ETH as part of the recovery. Founder Stani Kulechov has also pledged to donate 5,000 ETH personally. Other contributors, including Emilio Frangella, Ernesto Boado, and Marcelo Ruiz de Orlano, are also providing support. The response has quickly expanded beyond Aave, with Consensys and its founder Joseph Lubin committing up to 30,000 ETH in financial support. 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.' The effort has also drawn smaller contributions from across the community, including Lido, EtherFi, and Mantle. Babylon Foundation plans to deposit $3 million in USDT, while Renzo has supplied over $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. The list of participants continues to grow, with entities such as Ethena, LayerZero, Frax Finance, and Ink Foundation also contributing. '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. In parallel, Aave Labs has put forward a proposal asking Arbitrum governance to approve the release of roughly 30,765.67 ETH 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.