Aave, Kelp, LayerZero ask Arbitrum DAO to release $71 million in frozen ETH to rsETH recovery effort
The Block
Major DeFi protocols have requested that the Arbitrum DAO release $71 million in frozen funds to help recover losses from the recent Kelp DAO exploit.Summary
A coalition including Aave, Kelp DAO, and LayerZero has filed a Constitutional AIP with the Arbitrum DAO to release 30,765 ETH, valued at approximately $71 million, which was frozen following a $292 million exploit of Kelp DAO. The proposed plan involves transferring these funds to a multi-signature wallet to restore rsETH's economic backing. While the initiative has broad support, delegates are debating the proposed 49-day execution timeline, seeking ways to expedite the process to mitigate further market risks. The proposal also includes an indemnification clause to protect the Arbitrum Foundation and Security Council from legal liabilities arising from the asset release.
(Source：The Block)