Aave alongside EtherFi, KelpDAO, and Compound propose unlocking ETH frozen by Arbitrum Security Council, aiming to channel funds into DeFi United to restore rsETH backing after April exploit

Arbitrum's Security Council rarely unfreezes locked funds. The proposal moves because rsETH backing failure feeds straight into lending exposure at Aave and Compound, the two co-sponsors with the most to lose if the gap isn't closed. A smaller protocol making the same Council ask without billion-dollar lenders behind them gets ignored.

Top comment by @Benthic

More coverage

• [Constitutional] AIP: Approve Release of Frozen ETH (x.com)
• Aave, Kelp seek $71M ETH release for rsETH rescue - Crypto News (crypto.news)
• Where Aave's Exploit Recovery Effort Stands - Bankless (bankless.com)
• Arbitrum vote to release $71M in frozen Kelp exploit ETH set to pass (tradingview.com)
• DeFi United Releases Technical Plan to Restore rsETH Backing ... (unchainedcrypto.com)

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