Kelp DAO has restarted withdrawals after burning the attacker's rsETH on the Arbitrum network, following a $293 million hack that hit the protocol earlier this week. The decentralized finance platform is now leaning on Aave to help restore the stolen rsETH tokens over a two-week recovery period.
Burning the attacker's tokens
The hack drained $293 million worth of rsETH from Kelp DAO. In response, the project burned the attacker's rsETH holdings on Arbitrum, a move that allowed it to reopen withdrawals for users who had been locked out since the exploit. The exact method of the breach remains unclear, but the recovery effort is underway.
Aave's role in restoration
Aave, the lending protocol that underpins parts of Kelp DAO's infrastructure, is supporting a two-week recovery process specifically designed to restore the stolen rsETH. The plan involves working with Kelp DAO to reimburse affected users and stabilize the token's peg. Neither Aave nor Kelp DAO has provided detailed technical steps, but both have confirmed the timeline.
What withdrawals mean for users now
With withdrawals back online, rsETH holders can access their funds again. The two-week window set by Aave gives the teams time to fully restore the stolen tokens and ensure the protocol's safety. Users are advised to monitor official channels for any changes to the recovery schedule or additional security measures.
