Aave spearheads DeFi efforts to patch holes and mitigate losses following the $292 million KelpDAO hack.

According to Mars Finance, Aave, in conjunction with several institutions, has launched the "DeFi United" rescue plan to address the approximately $292 million loss caused by the KelpDAO vulnerability attack and prevent the spread of bad debts. The attack stemmed from a vulnerability in its integration with LayerZero, allowing hackers to forge uncollateralized rsETH and borrow approximately $190 million worth of assets on Aave, leading to distorted collateral and a run on the platform. The platform's TVL (total value of funds) evaporated by approximately $10 billion at one point. Currently, Lido Finance, EtherFi, and founder Stani Kulechov have proposed a funding plan; Arbitrum has frozen some funds, but the remaining assets have been transferred through THORChain, making recovery difficult. The current focus is on joint funding to "plug the hole" and stabilize the DeFi lending system.