DeFi protocols seek $71M ETH release for exploit recovery

Aave Labs, alongside Kelp DAO, LayerZero, EtherFi, and Compound, has submitted a proposal to the Arbitrum DAO requesting the release of approximately $71 million in frozen ETH. These funds, totaling 30,765.67 ETH, were frozen by the Arbitrum Security Council following the recent Kelp DAO exploit. The objective is to channel these assets into DeFi United, a coordinated cross-protocol initiative aimed at restoring the backing of rsETH. The proposal highlights concerns that the standard DAO governance process may be too lengthy for an urgent recovery effort.