Kelp DAO has moved to contain fallout from a recent exploit by burning the attacker's rsETH tokens on Arbitrum. The decentralized finance protocol also laid out a two-week plan to replenish its rsETH reserves using a multisig wallet tied to Aave's Recovery Guardian system.
The Token Burn
On-chain records show Kelp DAO sent the exploiter's rsETH tokens to a burn address, removing them from circulation. The tokens were connected to the address that carried out the exploit, though the DAO hasn't disclosed how many tokens were destroyed or the exact nature of the vulnerability. The move effectively prevents the attacker from moving or cashing out the stolen assets on Arbitrum.
Refilling the Reserves
To make users whole, the DAO plans to refill its rsETH reserves within two weeks. It will use Aave's Recovery Guardian multisig wallet to execute the replenishment. The Guardian is a feature of Aave's governance framework that allows emergency actions, including the transfer of funds, through a multi-signature process. Kelp DAO hasn't specified how much rsETH needs to be replaced or where the replacement tokens will come from, but the timeline suggests a structured recovery effort is underway.
The two-week window leaves the DAO little time to coordinate with the multisig signers and finalize the transfer. Community members are watching for updates on the exact mechanics and any additional security measures that might follow.
