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AVALANCHE FOUNDATION JOINS DEFI UNITED BACKING AAVE AFTER RECENT RSETH HACK
The Avalanche Foundation (@AvalancheFDN) publicly aligned with DeFi United today, the coordinated effort backing Aave through the fallout of the April 18 ethereum:0xa1290d69c65a6fe4df752f95823fae25cb99e5a7 exploit. The foundation framed the moment as DeFi's first transparent stress test of TradFi-scale flows.
DeFi United has raised more than $160M as of April 25, with over 100,360 ETH now committed across the broader coalition. Mantle pledged up to 30,000 ETH as a three-year credit facility, Aave DAO is voting on 25,000 ETH from treasury, and Aave founder Stani Kulechov added 5,000 ETH from personal funds.
The exploit hit KelpDAO's LayerZero V2 Unichain-to-Ethereum bridge, configured as 1-of-1 DVN. A forged inbound packet minted 116,500 unbacked rsETH. The attacker deposited about 89,567 rsETH on Aave V3 across Ethereum and Arbitrum and borrowed roughly 82,650 WETH, leaving up to $230.1M in bad debt. Aave's smart contracts were never compromised.
Recovery is partial. Arbitrum's Security Council froze 30,765 ethereum:native tied to the exploit. The hacker bridged the rest into bitcoin:native via Thorchain. Aave's TVL dropped between $6B and $9B in the immediate aftermath.
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