Arbitrum DAO Kelp Hacker Uses His ETH to Vote for DeFi United
AAVE/USDT
$103,055,459.20
$94.06 / $91.51
Change: $2.55 (2.79%)
+0.0071%
Longs pay
Contents
Arbitrum DAO is voting to release the 30.766 ETH transferred by Kelp DAO's major attacker to the Arbitrum One address to the DeFi United initiative. The vote received strong yes support with 16.9 million ARB tokens in the first hour; no no votes yet, and the process will continue until May 7. This step aims to redirect the attacker's frozen funds to rescue the DeFi ecosystem. The Security Council's quick intervention reflects the community's urgent response. Suspicion that the attacker is from the North Korea-linked Lazarus Group makes the incident even more critical.
Arbitrum Security Council's Quick ETH Locking Move
On April 20, the Arbitrum Security Council locked approximately $71.1 million worth of ETH to limit the attack; the funds had been moved to the 0x0000000000000000000000000000000000000DA0 address and required DAO approval for release. The Council stated that it acted under the direction of law enforcement and protected the ecosystem's integrity without affecting Arbitrum users. The Council's use of emergency powers with approval from 9 out of 12 members ignited centralization debates; some criticized it, while others defended the ecosystem mandate.
Technical Details of the Kelp DAO Attack and Cross-Chain Exploit
Days before the attack, hackers withdrew 18% of the protocol's rsETH, amounting to $292 million, using Kelp DAO's cross-chain bridge. The stolen assets were transferred to lending platforms like AAVE detailed analysis, Compound, and Euler, where they were borrowed against as WETH and other tokens, creating a $236 million debt pile. Protocols like Kelp and Aave paused contracts, while the Lazarus Group suspicion alarmed cybersecurity experts. This exploit exposed channel vulnerabilities in restaking protocols.
DeFi United's Solidarity Fund and Contribution Table
| Contributor | Amount (ETH) | Value (Million $) |
|---|---|---|
| Arbitrum DAO (Potential) | 30.766 | ~71.1 |
| Consensys & Joseph Lubin | 30.000 | ~69 |
| Mantle Loan | 30.000 | ~69 |
| Total (As of Thursday) | >311M$ ETH+Stable | >311 |
DeFi United was established under Aave's leadership to heal the wounds of the attack and has collected over $311 million in ETH and stablecoins as of Thursday. If approved, Arbitrum DAO will make the largest contribution. Actors like Aave DAO, Stani Kulechov, LayerZero, and Kelp have provided support.
AAVE Price and Technical Analysis: Support and Resistance Levels
AAVE price is currently at $91.97, down 0.47% in 24h in a downtrend. RSI 43.00 neutral, Supertrend bearish, pressure above EMA 20 $95.67. Critical levels for AAVE futures:
- Supports: S1 $90.33 (⭐ Strong, 73% score), S2 $63.59 (59% medium)
- Resistances: R1 $94.10 (⭐ Strong, 80% score), R2 $101.95 (67% strong)
Uncertainty in lending protocols after the attack has impacted AAVE; approved fund release could trigger a rally.
Impacts on ARB and ETH and DeFi Solidarity
This solidarity demonstrates the DeFi sector's ability to organize quickly in times of crisis. The ARB vote is a turning point for ARB detailed analysis; it strengthens confidence in the ETH ecosystem. Similar incidents highlight the need to strengthen protocols' emergency pause mechanisms.