Yes

>>Aave concludes the initial technical recovery phase for rsETH and initiates efforts to restore liquidity.

Aave concludes the initial technical recovery phase for rsETH and initiates efforts to restore liquidity.

crypthub

5/13/2026, 2:00:27 AM

Recovery Milestone

Aave announced the completion of phase one of the rsETH technical recovery after the KelpDAO breach. The protocol burned the hacker‑controlled rsETH on Arbitrum, removing the immediate threat. This action restores normal operations on Aave’s platform and protects user funds.

Liquidity Restoration Plan

Aave will now feed liquidity into LayerZero’s OFT adapter, a cross‑chain bridge, to enable safe fund returns. Services will be reinstated gradually, with security checks at each stage. The phased rollout aims to avoid further exploits and ensure stability.

Broader DeFi Impact

The incident underscores risks tied to liquid staking and cross‑chain interoperability. Aave’s response—token burning and use of a trusted bridge—shows growing maturity in DeFi incident handling. The community will watch the phased recovery as a benchmark for multi‑chain security practices.