Every confirmed event from the KelpDAO drain through the DeFi United relief effort.
Attacker exploited the KelpDAO bridge by feeding a forged LayerZero packet through a 1-of-1 DVN, minting 116,500 rsETH (~$292M, ~18% of circulating supply) to an attacker-controlled address. Chainalysis attributes the attack to DPRK-linked Lazarus Group, which compromised internal RPC nodes and DDoSed external ones to falsify verification data.
Kelp's emergency pauser multisig froze the core contracts 46 minutes after the drain. Two follow-up attempts at 18:26 UTC and 18:28 UTC both reverted, each carrying another LayerZero packet attempting to drain ~40,000 rsETH (~$100M).
Lending protocols froze rsETH markets to prevent further bad debt accumulation. Aave had ~90,000 rsETH deposited as collateral against ~$190M borrowed in ETH and other assets across Ethereum and Arbitrum.
Fluid, in consortium with Lido, Ether.fi, 1inch, 0x and Kyber, launched an aWETH redemption vault in under 24 hours. Lenders deposit aWETH in exchange for wstETH or weETH; the vault uses the aWETH to repay its own Aave WETH debt. Capacity capped at $1B. $136M processed in the first 48 hours.
Aave service providers publish the incident report and formally announce the DeFi United effort to coordinate industry relief with ecosystem partners.
LlamaRisk estimates Aave bad debt between $123.7M (if socialized across rsETH holders) and $230.1M (isolated to L2s, concentrated on Arbitrum and Mantle).
Arbitrum's Security Council froze 30,766 ETH (~$71M) linked to the exploit, moving the attacker-controlled funds into an intermediary wallet.
Mantle Treasury proposes a 30,000 ETH loan to Aave DAO (~$69.4M) at Lido yield + 1%, 36-month maturity, with optional early repayment. Proposal also seeks delegation of 130,000 AAVE tokens for governance participation. Still in discussion — pending Mantle forum poll, Snapshot vote, and Aave DAO approval.
Aave founder Stani Kulechov personally commits 5,000 ETH to the DeFi United relief effort.
Lido Labs Foundation puts forward a proposal to allocate up to 2,500 stETH (~$5.7M) to the DeFi United relief vehicle to reduce the rsETH backing shortfall.