DeFi Platforms File AIP to Unlock $71M Frozen ETH for rsETH Recovery

DeFi leaders like Aave Labs, KelpDAO, EtherFi, and Compound have petitioned Arbitrum DAO via Constitutional AIP to release 30,765.67 ETH ($71M) frozen after the April 18 KelpDAO exploit draining 116,500 rsETH ($292M). Aave froze rsETH reserves across Ethereum, Arbitrum, Base, Mantle, and Linea on April 23, prompting relief pledges including Lido's 2,500 stETH and EtherFi's 5,000 ETH. The proposal routes funds to a secure Gnosis Safe for collateral restoration, aiming to slash bad debt and systemic risk amid $9.87B options expiry volatility.