Aave, Compound and DeFi United publish technical recovery plan to purge bad debt and restore rsETH backing

Aave and other DeFi participants, organized as DeFi United, released a coordinated technical proposal to address fallout from the Kelp DAO rsETH exploit and to restore full backing for the token after an April 18 bridge vulnerability impacted liquidity and collateral positions across chains ^{[1] [2] [3]}.

The plan outlines concrete engineering steps aimed at eliminating bad debt and rebuilding collateral; among the measures is a temporary oracle adjustment designed to allow the controlled liquidation of roughly 107,000 stolen rsETH tokens so affected markets can be returned to normal backing levels ^{[1] [4]}.

Coalition members say the recovery process will prioritize restoring full backing and making impacted users whole, with Aave and ecosystem partners coordinating cross-project technical work to refund affected positions and normalize lending markets ^{[2] [3] [4]}.

Protocols and the DeFi United coalition are executing the technical plan and monitoring progress; further updates will be published as recovery steps are implemented ^{[1] [3]}.