AAVE-Led DeFi United Cleans Up Kelp Hack

AAVE-Led DeFi United Rescue Plan

A rare example of solidarity is being witnessed in the DeFi sector: The DeFi United coalition led by Aave has activated a comprehensive technical plan to clear the bad debts remaining from the Kelp DAO hack and re-establish the collateral behind rsETH tokens. The 116.500 rsETH stolen in the North Korean hackers’ attack on April 18 represented 18% of the circulating supply, and these tokens were used as worthless collateral in AAVE detailed analysis and Compound protocols. The coalition plans to convert the committed ETH into rsETH in controlled stages to liquidate the hackers’ positions, followed by liquidations via governance-controlled oracle price adjustments. Under the plan, approximately 13.000 ETH from Aave’s Ethereum and Arbitrum markets and 16.776 ETH from Compound are targeted for recovery.

Kelp DAO Hack Details and Coalition Support

The attackers had borrowed 82.650 WETH and 821 wstETH by posting 89.567 unsupported rsETH as collateral; this move put the protocols at serious risk. While the Arbitrum Security Council has already frozen 71,5 million dollars tracked to hacker addresses, the coalition has reached a total commitment of 303 million dollars in capital and credit as of Monday. Consensys and Joseph Lubin pledged support up to 30.000 ETH; Aave Labs CEO Stani Kulechov, along with other leading players like Lido, have joined the plan. Aave warns that the attacker’s intentional interference may require additional steps for full liquidation, while the strategy aims to protect market stability by advancing in controlled tranches. Lubin described this effort as a comprehensive response protecting users, stating, “The Ethereum ecosystem shows its best side when acting together.”

AAVE Technical Outlook and Price Analysis

With these developments, AAVE price is at the 96.60 USD level, showing a +0.41% change in the last 24 hours. RSI at 47.97 is neutral, but downtrend and bearish Supertrend dominate. EMA 20: 97.2169 USD. Strong supports: S1 90.1563 USD (⭐ STRONG, -6.67%), S2 85.0500 USD (⭐ STRONG, -11.96%). Resistances: R1 106.3200 USD (⭐ STRONG, +10.06%), R2 116.9051 USD (⭐ STRONG). Follow AAVE futures. This coordinated effort could boost investor confidence by signaling DeFi’s maturation.