The KelpDAO cross-chain bridge exploit on April 18 resulted in the loss of $292 million, significantly impacting the decentralized finance (DeFi) industry. As a consequence, the DeFi lending sector is grappling with an estimated shortfall ranging from $123.7 million to $230.1 million. This substantial financial impact has prompted a coordinated relief effort branded as “DeFi United,” aimed at stabilizing and supporting the affected market.
“DeFi United” exemplifies industry-wide collaboration to address the urgent challenges stemming from the exploit. The scale of the issue necessitates coordinated financial support and strategic proposals from various stakeholders within the DeFi ecosystem. This initiative underscores the importance of collective action in navigating crises and highlights the industry’s capacity to unite in the face of adversity.
Stani Kulechov pledged 5,000 ETH to the coordinated relief effort alongside other major commitments from across the DeFi ecosystem. Mantle proposed a credit facility of up to 30,000 ETH to back an Aave DAO loan, specifying an interest rate set at Lido’s rate plus 1% with repayment over up to 36 months. Bybit indicated it will vote YES on Mantle’s proposal as Mantle’s biggest stakeholder, and Lido Finance contributors proposed up to 2,500 stETH in contributions contingent on full funding. Together these commitments outline a mix of direct capital pledges and structured credit proposals intended to address liquidity pressures in affected markets.
Golem Foundation and Golem Factory announced a combined contribution of 1,000 ETH to the relief effort, while Ether.fi proposed deploying 5,000 ETH from its DAO treasury. Frax Finance signaled a governance vote to support Aave markets as part of the coordinated response. These contributions and proposals are part of the coordinated DeFi relief effort branded as “DeFi United.” The listed commitments represent the primary financial proposals captured in the initiative’s early stages.
Circle’s chief economist Gordon Liao proposed raising Aave’s USDC borrowing cap from 14% to 50% as part of the coordinated DeFi United response to the KelpDAO exploit. Circle CEO Jeremy Allaire amplified Liao’s proposal publicly. Frax Finance signaled a governance vote to support Aave markets in connection with the relief effort. These items were presented as governance-related actions within the broader DeFi United initiatives addressing the fallout from the April 18 exploit.
LayerZero published a recovery framework proposal that includes early voting incentives. The framework publication was positioned within the coordinated DeFi United relief effort following the KelpDAO cross-chain bridge exploit. The governance proposals noted here change protocol parameters and voting dynamics through formal proposals and governance signaling. Collectively, these governance measures were advanced as part of the DeFi United response to the exploit.
These governance proposals are elements of the coordinated DeFi United effort. They were advanced through formal proposals and governance signaling.
DeFi United aggregated a broad, cross-platform industry response that brought together protocol teams, exchanges, foundations and DAOs to coordinate financial and governance actions after the KelpDAO exploit. Participants spanning Aave, Mantle, Bybit, Lido Finance, Golem Foundation, Golem Factory, Ether.fi, Frax Finance, Circle and LayerZero signaled or proposed contributions and governance measures as part of the collective effort to stabilize affected markets and facilitate recovery.
