The week begins with news of massive support for the coordinated rescue initiative known as DeFi United, following the commitment of Circle Ventures, Consensys, and Ethereum co-founder Joseph Lubin. The entities confirmed a joint contribution of up to 30,000 ETH and the strategic purchase of AAVE tokens, in order to mitigate losses derived from the recent Kelp DAO exploit. The recovery fund has already raised more than 132,000 ETH, surpassing $300 million in total value.
Circle Ventures is purchasing $AAVE tokens because strong DeFi infrastructure does not build itself. Aave is helping to shape the future of onchain finance, and we’re backing that ecosystem and the entire community built around it.
DeFi United
— Circle (@circle) April 27, 2026
The incident, caused by a vulnerability in the LayerZero bridge that allowed the issuance of unbacked rsETH, generated significant bad debt in the Aave markets. This unprecedented institutional response seeks to restore confidence in on-chain infrastructure and normalize market conditions. According to experts, if all pending proposals from DAOs such as Lido and Ether.fi are approved, the financial hole could be completely covered, stabilizing an ecosystem whose Total Value Locked (TVL) has fallen by 25% so far this year.
With the backing of industry giants and technical advice from Sharplink, the next step for DeFi United is the execution of governance votes to reintegrate funds and restore rsETH backing.
Source:https://x.com/circle/status/2048765469512106044
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