Aave and Kelp DAO open full operations for rsETH tokens

After more than a month of turmoil and continuous efforts, Aave and Kelp DAO jointly announced on Monday that they have fully restored rsETH operations after moving the last ditch of tokens to a LayerZero security fund.

According to the official statement shared in the post on With this, the DeFi platform claimed to have fully restored operations.

Kelp DAO and Aave restore rsETH transaction after 39 days

In one month, Aave and Kelp DAO team members did a commendable job of restoring normal operations despite constant criticism from the community for their poor security measures during the cyberattack. However, other DeFi entities have also joined these efforts and shown their support in Aave’s DeFi United program.

On April 18, DAO kelp breakthrough The incident occurred, and attackers were able to steal approximately $292 million worth of rsETH tokens after exploiting a vulnerability in the LayerZero-based cross-chain bridge. According to the official statement from Kelp DAO, hackers seized 116,500 rsETH tokens, which represents about 18% of the token’s circulating supply.

The hack has created serious problems around the DeFi sector after hackers transferred stolen rsETH tokens and used them as collateral on lending platform Aave. This allowed them to borrow about $192 million worth of wrapped Ethereum (wETH).

This action by the attackers forced several platforms, including Aave, SparkLend, and Fluid, to temporarily freeze their markets to avoid any additional damage in this attack. This was a clear moment where DeFi users started to panic and started rushing to withdraw their funds from the DeFi sector. Within a few hours, more than $13 billion was wiped from the sector.

After this attack, the Wrapped Ethereum network remained stuck around more than 20 different blockchains. Not only that, but this attack created bad debts in… Decentralized finance sector.

In response to this cyberattack, Arbitrum’s security board was able to freeze approximately $71 million in Ethereum tokens that were linked to the hacker on the Arbitrum One network. This was the first major victory in recovering stolen funds.

Following this attack, Kelp DAO, Aave, and a group of DeFi entities announced a new initiative called DeFi United. This program includes a plan to collect recovery funds through Aave’s Recovery Guardian and Kelp’s private vault.

Apart from this, Aave and Kelp DAO also burned the exploiter’s hacked rsETH tokens on Arbitrum, which were around 117,132. After that, they started collecting ETH to replenish the bridge’s safe deposit box and restore proper support for rsETH.

Some users are still experiencing issues with hgETH tokens

While Aave and KelpDAO have fully restored operations for rsETH tokens, some users on X are still raising questions about issues with hgETH tokens. It is the liquid token issued by the Kelp DAO high growth vault.

According to some users on social media platforms, many hgETH token holders are facing issues with various operations like blocking, transferring or withdrawing their tokens even after announcing the rsETH filling process.

Holders of the hgETH token require a specific timeline Regarding the full operational restoration of hgETH. So far, Kelp DAO has not announced any major update related to this matter.

In the past few days, the team has announced the reopening of certain vaults, such as AgETH. Due to lack of communication, various rumors are spreading about the incident, and the Kelp DAO team needs to provide clarification about it.

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