Gate News message, April 27 — Aave Labs, Kelp DAO, LayerZero, EtherFi, and Compound filed a Constitutional AIP on the Arbitrum forum Saturday morning, requesting the release of approximately $71 million in frozen ETH to support DeFi United, a cross-protocol relief effort following last week’s $292 million Kelp DAO exploit. The proposal seeks to unlock 30,765.67 ETH that the Arbitrum Security Council froze and seized on April 21 after tracing it to addresses controlled by the exploiter.
Under the proposal, the funds would be transferred to a 2-of-3 Gnosis Safe co-signed by Aave, Kelp DAO, and Certora, designated solely to receive recovered ETH and restore rsETH’s economic backing. The proposal also includes an extensive indemnification clause under which Aave Labs would indemnify the Arbitrum Foundation, Offchain Labs, and Security Council members from any claims arising from the freeze or proposed release, with no cap or deductible.
The Constitutional AIP process carries a lengthy timeline of approximately 49 days, encompassing forum discussion, an optional temperature check, voting delays, an onchain vote of 14 to 16 days, L2-to-L1 message finalization, and final execution steps. Community members and Arbitrum Security Council member Griff Green have already called for expediting the process, citing concerns over open positions on Aave that could face liquidation during the extended waiting period.
Other major contributions to DeFi United to date include Aave’s own 25,000 ETH DAO commitment, Lido’s 2,500 stETH, 5,000 ETH each from EtherFi and Aave founder Stani Kulechov, and a proposed 30,000 ETH credit facility from Mantle to absorb residual bad debt.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Dormant Whale Deposits 2,301 ETH Worth $5.5M to Major CEX After 3-Year Silence
Gate News message, April 27 — According to Onchain Lens, a whale that has been dormant for three years deposited its entire holdings of 2,301 ETH, valued at approximately $5.5 million, to a major centralized exchange today.
The transfer marks the first significant activity from the address in three
GateNews13m ago
DeFi United’s crowdfunding campaign raises 102,000+ ETH, with AAVE rebounding to $100
According to the official DeFi United page, the multi-protocol relief fund DeFi United, initiated and led by Aave service providers, has raised more than 102k ETH as of April 27. The goal is to cover the bad-debt shortfall created in the Aave V3 market after the April 18 Kelp DAO cross-chain bridge attack incident. AAVE briefly broke above $100 before falling back.
MarketWhisper42m ago
Ethereum Spot ETFs Post $155M Net Inflows Last Week, Extending Three-Week Streak
Gate News message, April 27 — Ethereum spot ETFs recorded net inflows of $155 million during last week's trading days (April 20-24, Eastern Time), according to SoSoValue data, extending a three-week streak of net inflows.
BlackRock's ETHA led all funds with $138 million in weekly net inflows,
GateNews2h ago
Aave Labs proposes for Arbitrum: unlock 30,765 ETH in compensation for victims
According to a proposal published by Aave Labs on April 25 on the Arbitrum governance forum, Aave Labs asks the Arbitrum decentralized autonomous organization (DAO) to unfreeze 30,765 ETH associated with the Kelp DAO attack and to transfer the above funds to the “DeFi United” Recovery Fund, to restore support for rsETH and compensate holders.
MarketWhisper2h ago
Bitcoin Surges Above $79K, Asian Equities Rise as Geopolitical Tensions Ease
Gate News message, April 27 — Bitcoin climbed 2% to $79,110 while Ethereum gained 3% to $2,388 on Sunday evening, as Asian equities mostly traded higher amid easing geopolitical tensions.
Japan's Nikkei 225 index (Japan's benchmark equity index) rose 1.4% during Monday morning trading to reach a re
GateNews2h ago
ETH Leverage Whale Holds 20K Long Position with $2.13M Unrealized Gain, Up $3.36M from Loss
Gate News message, April 27 — An Ethereum leverage whale monitored by on-chain analyst Ai Yi maintains a long position of 20,000 ETH with an unrealized gain of $2.134 million, after swinging from a $1.227 million loss. The position's average entry price stands at $2,287.2 per ETH.
The trader has
GateNews2h ago
