Kelp DAO Recovers 73,700 ETH as Recovery Plan for rsETH Holders Advances

Kelp DAO has announced significant progress in its efforts to address the recent rsETH shortfall incident, successfully recovering approximately 73,700 ETH to date. Working in close coordination with the Aave protocol and various ecosystem partners since April 18, 2026, the liquid restaking platform is actively bridging the gap caused by the initial deficit of 163,200 ETH. This recovery effort marks a critical phase in restoring liquidity and stability for users of the rsETH liquid restaking token.

Progress Report on Asset Recovery and Security Council Involvement

The recovery of funds has been achieved through a multi-faceted approach involving both direct protocol actions and external governance interventions. According to official data, the current status of the recovery includes:

• Kelp has directly recovered 40,300 rsETH, which is valued at approximately 43,000 ETH.
• The Arbitrum Security Council has successfully recovered an additional 30,700 ETH.
• The remaining shortfall currently stands at approximately 89,500 ETH.

Liquid restaking tokens like rsETH allow users to earn additional yields on their staked Ethereum, but these protocols rely on complex cross-chain security measures to protect underlying assets.

Industry Commitments and Ecosystem Support

To address the outstanding 89,500 ETH deficit, Kelp DAO has secured a series of public commitments from prominent entities within the decentralized finance (DeFi) sector. These contributions, totaling 43,500 ETH, are expected to significantly mitigate the impact on stakeholders. Notable contributors to the recovery fund include the Mantle network, Aave founder Stani Kulechov, and major liquid staking providers such as Lido and EtherFi, alongside the Golem project.

Kelp stated that rsETH holders are the top priority and will continue to release updates.

The collaborative nature of this response highlights the interconnectedness of the Ethereum staking landscape, where major protocols frequently cooperate to maintain systemic integrity during security or liquidity incidents.

In conclusion, while a substantial portion of the missing funds has been accounted for or pledged, the recovery process remains ongoing as Kelp DAO works to secure the final balance. The project has reaffirmed its commitment to transparency and the protection of its user base, promising regular updates as the remaining shortfall is addressed through further technical and community-driven initiatives.