Mantle Joins Aave’s DeFi United to Fix Kelp DAO Problems

Among the biggest challenges in the DeFi sector, major protocols are coming together to mitigate the damage caused by the Kelp DAO security breach. On April 23, the Mantle Network came up with an official proposal to give credit to the support program being announced by Aave.

Following this week’s rsETH event about @KelpDAO and @LayerZero_CoreA request has been made for Mantle to finance the loan @mzimu‘s coordinated support.

The loan will be part of an integrated system, designed to reduce…

– Mantle (@Mantle_Official) April 24, 2026

The project is called DeFi United, which unites the DeFi sector to work on recovery. The main objective of the project is to raise support for the poor and create a lending market that supports all companies.

What is the New Mantle Concept?

A key part of this process is creating a coherent plan. This system is designed to absorb the damage caused by the rsETH shortage.

In an ideaFear MNT1.69% has decided to use its treasury to finance its return. This background will help Aave manage “bad debts.” This bad debt was created when attackers used non-refundable tokens as collateral.

By issuing loans, Mantle is offering its services to reduce market volatility. It will help them avoid sudden downturns that could lower prices significantly.

This idea is part of a larger group, as Mantle is not alone in raising support. For example, Lido Finance has donated 2,500 stETH to a charity fund.

The main goal of DeFi United is to fill the shortfall of 100,000 ETH affecting RSETH. Also, they want to do this without putting all the burden on the users of a single protocol.

Aave is my life’s work and we are constantly working to get the best results for our users.

I am personally donating 5000 ETH to DeFi United as we continue to work with our partners to implement more pledges. I am working to see this resolved and the market…

– Stani (@StaniKulechov) April 23, 2026

The founder of Aave himself has raised his support for this, saying, “I am personally donating 5000 ETH to DeFi United as we continue to work with our partners to implement more pledges. I am working hard to get this resolved and the market back to normal as soon as possible. “

Meanwhile, many DeFi projects have already shown their support in the fight against money problems, including EtherFi Foundation, Athena, LayerZero, Tydro, Ink Foundation, and Golem Foundation.

How the Kelp DAO rsETH Exploit Happened on April 18th

The Kelp DAO event took place on April 18th after a lot of trouble with the communication tools. The attackers look for the so-called 1 in 1 verifier configuration. This change was inside the LayerZero bridging adapter used for rsETH.

By replacing the “Remote Procedure Call (RPC)” with DDoS attacks against external data sources, the attackers hacked the protocol’s validator into an echo chamber.

This allowed hackers to feed malicious data to the system. The fake data showed that 116,500 rETH was burned during the initial phase. In fact, no such sale ever took place.

After this, Ethereum’s mainnet consensus released rETH tokens worth 292 million dollars, which have no support at all. The attackers moved phantom tokens into the Aave V3 markets across Mantle, Arbitrum, and Ethereum.

They used fake tokens as collateral to borrow about $190 million in real ETH and stablecoins. The scam has transferred losses from the Kelp DAO to Aave’s lending pools, leading to a decline in depositors.

Aave Announces Project to Support Ecosystem

In response to this shocking attack, Aave has created a coalition of DeFi projects to provide relief from the ongoing crisis that affected tokens such as. Election. The purpose of DeFi United is to spread the losses in the savings and protocols. This means that they cannot always force depositors to bear losses.

Aave has already frozen rsETH reserves across Ethereum, Base, Mantle, and Linea. This will help them to stop the spread of damage.

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