TL;DR:
- Compound proposed contributing between 1,900 and 3,000 ETH, equivalent to up to $6.9 million, to the DeFi United recovery initiative.
- The coalition of 14 protocols committed over $161 million in ETH to restore rsETH backing following the April 18 exploit.
- Consensys and Joe Lubin contributed 30,000 ETH, while Aave contributed 25,000 ETH plus a personal commitment of 5,000 ETH from Stani Kulechov.
Compound submitted a proposal to its governance forum to join DeFi United, the recovery initiative that emerged in response to the rsETH exploit that occurred on April 18.
The contribution proposed by the protocol falls within a range of 1,900 to 3,000 ETH, equivalent to between $4.37 million and $6.9 million at a reference price of $2,300 per ETH. Approval is subject to a community vote, and the final amount will be determined by the Compound Governance Working Group alongside Gauntlet, the security providers, and the Foundation.
The DeFi United plan aims to recover approximately 16,776 ETH from the attacker’s active positions on Compound, along with the recovery of 13,000 ETH on Aave. The proposal sets explicit conditions for the release of funds: full restoration of rsETH collateral, equal treatment for all affected parties, and a transparent execution plan with periodic governance updates.
Some 1,857 ETH are contingent on successfully recovering the attacker’s active position. The DAO reserves the right to reduce or withdraw its participation if those conditions are not met.
Compound: Fourteen Protocols and $161 Million at Stake
The industry’s response reached a scale with few comparable precedents in the history of the decentralized ecosystem. Consensys and Ethereum co-founder Joe Lubin committed some 30,000 ETH, providing immediate liquidity and preventing rushed decisions from being forced through governance processes. Lubin described the initiative as “a broad, coordinated response to protect users and strengthen the infrastructure.” Aave contributed 25,000 ETH, and its founder Stani Kulechov made a personal contribution of an additional 5,000 ETH. Mantle extended a credit line of 30,000 ETH, while Lido contributed up to 2,500 stETH.
The Avalanche Foundation, also part of the coalition, argued that the DeFi ecosystem is undergoing a stress test in public, but this time it does so “with transparent books and real accountability.” Governance votes remain pending at Compound and at several of the participating protocols.
