Aave rallies DeFi partners to contain fallout from $292 million KelpDAO hack

Industry players are coordinating a recovery effort as the year's biggest crypto rattled Aave, with Lido and EtherFi being firsts to offer aid. What to know : Aave and partners are coordinating major recovery effort across DeFi to cover a shortfall and prevent bad debt after the $292 million exploit tied to KelpDAO. Lido Finance, EtherFi and Aave founder Stani Kulechov among those who proposed ether (ETH) to cover the hole. The initiative comes after an attacker created unbacked rsETH tokens and used them to borrow ether from Aave, leaving the protocol with impaired collateral and triggering a withdrawal wave.