Arbitrum DAO Unanimously Approves 30,766 ETH Release to DeFi United for rsETH Recovery

Arbitrum DAO has unanimously voted to release 30,766 ETH frozen after the KelpDAO exploit to a multi-sig controlled by Aave Labs, KelpDAO, and ether.fi, marking a landmark step in the DeFi United recovery effort. The April 18, 2026, LayerZero bridge hack minted 116,500 unbacked rsETH (~$292M), leaving Aave with ~$195M bad debt and prompting pledges exceeding $320M from Aave (25,000 ETH), Mantle (30,000 ETH loan), Consensys (30,000 ETH), LayerZero (10,000 ETH), and KelpDAO (2,000 ETH). RsETH re-pegged from 0.85 to 0.97 ETH via buybacks and supply cuts amid 27% DeFi TVL drop to $80B, stabilizing markets without ETH price impact.