Ethereum Heavyweights Mobilize 30,000 ETH to Stabilize DeFi After $290 Million Exploit

A coalition of prominent Ethereum figures and protocols has launched a recovery initiative to mitigate the fallout from a $290 million exploit targeting the rsETH bridge. The 'DeFi United' group, which includes Lido, EtherFi, Ethena, Mantle, and Frax, is working to restore backing for rsETH and stabilize disrupted markets. Consensys and Ethereum co-founder Joe Lubin have joined the effort, committing up to 30,000 ETH to provide immediate liquidity. This funding is intended to support affected users and limit further disruption across decentralized finance (DeFi) protocols while formal governance approvals are pending. Sharplink, a publicly traded Ethereum treasury company, is providing advisory support to structure the recovery plan. The crisis originated on April 18 when a configuration error in a LayerZero-based bridge operated by Kelp DAO allowed attackers to drain approximately 116,500 rsETH. The incident created a ripple effect across the ecosystem; on Aave, the attacker utilized the stolen rsETH as collateral to borrow liquidity, resulting in roughly $200 million in bad debt and forcing the protocol to freeze rsETH markets. This exploit is part of a broader surge in DeFi vulnerabilities. Data indicates approximately $729 million has been lost to hacks over the last 90 days, with $623 million occurring in April alone, including a $280 million exploit of Drift Protocol. Researchers have noted that advances in AI are making it easier for attackers to identify smart contract vulnerabilities, with some models capable of identifying over half of known exploits. Market participants remain cautious, with prediction markets currently pricing an 84% probability of another major crypto hack exceeding $100 million by the end of 2026.