rsETH protocol operations have fully resumed. - The exchange rate was updated at 16:45 CET today, reflecting all staking rewards accrued during the pause. - EIGEN claims are now distributable to rsETH holders for the full pause window. - Deposits and withdrawals are live on mainnet and L2’s - rsETH backing is fully restored. Details below. 🧵

Kelp and Aave have successfully completed a series of steps for rsETH backing, including burning the exploiter’s rsETH on Arbitrum. 117,132 rsETH will be progressively refilled from Aave Recovery Guardian and Kelp Recovery Safe into the LayerZero OFT adapter on mainnet over the next two weeks. rsETH on Mainnet and L2s remains fully backed at all times. Kelp will unpause withdrawals, tentatively within 24 hours, after the first tranche to the LayerZero OFT adapter. All rsETH operations - deposits, redemptions, bridging, and claims - will resume as usual after contracts are unpaused. Last week, we completed a security hardening pass across all LayerZero bridging configurations: verification now requires 4 independent attestors, block confirmations have been raised from 42 to 64, and all L2-to-L2 routes have been deprecated. These changes have been audited by BailSec. We are in the process of migrating to CCIP for further strengthened cross-chain bridging. Thanks to the @aave team and our DeFi United partners for being the cornerstone of this recovery.

On April 18, LayerZero's hosted infrastructure was exploited to forge a cross-chain message, draining 116,500 rsETH from the bridging adapter. Our core onchain and offchain infrastructure was not affected. As an interim security measure while we investigate a more secure cross-chain infrastructure, Kelp completed a full hardening pass across its current bridging infrastructure to prevent similar attacks. As of April 29, that work is done. What follows documents what changed and why it matters 🧵

Making right by every rsETH holder is our goal, and this plan is how we get there. The technical implementation plan is now public. It covers restoring rsETH backing, clearing affected positions across @aave and @compoundfinance, and resuming normal market operations across all affected markets. The plan is designed to restore full backing without socializing losses. Execution depends on governance approvals and finalizing agreements, and we will share progress publicly as each step moves forward. Thank you for staying with us through this.

We have been working closely with Aave to protect rsETH holders and stabilize the broader DeFi ecosystem. We are glad to share that we have reached a clear path forward. The above two mission statements have been the only things on our minds this week. As part of that commitment, we are contributing 2,000 ETH from our treasury directly to DeFi United. 71,700+ users stood up apart from DeFi partners across the board. Thank you to @aave, @EtherFi, @ethena, @Mantle_Official, @bgdlabs, @LidoFinance, @arbitrum, @inkonchain, @StaniKulechov, @The3D_, @eboadom, and everyone else who showed up. We are genuinely humbled. @aave and us are aligned on execution of the next steps. The final recovery plan, user instructions, and timing will follow shortly. DeFi United.

Kelp, alongside @aave, @ether_fi, @LayerZero_Core, @Compound_xyz, and others, has submitted a proposal to @arbitrum to release the ETH frozen after the April 18 incident into DeFi United, our coordinated recovery initiative. Every ETH released moves rsETH holders closer to whole. The proposal is live and open for the Arbitrum community's feedback.

Kelp and @aave have been working closely with ecosystem partners since April 18 to coordinate a recovery effort for rsETH holders. We want to share some factual statements about where we are, progress made, and the next steps. @ether_fi @ethena @LidoFinance @golemproject @inkfndhq @tydrohq @Mantle_Official @fraxfinance and layerzero have each committed in best capacity. We greatly appreciate their contributions. More announcements to follow. The initial shortfall from the incident was 163,200 ETH. Kelp recovered 40,300 rsETH (~43,000 ETH), while the @arbitrum Security Council secured another 30,700 ETH. Following these recoveries, the remaining shortfall stands at approximately 89,500 ETH. Of that remaining gap, confirmed public commitments from Mantle, Stani, EtherFi, Lido, Golem total 43,500 ETH. Kelp has been in direct conversations with partners in this effort to formalize the contributions. rsETH holders come first, and that’s been our priority since day 1. We will continue sharing updates as further commitments are confirmed. DeFi United.