Arbitrum DAO has opened a governance vote to release 30,766 ETH to DeFi United, a recovery fund created after the recent Kelp DAO exploit.
In mid‑April, attackers exploited Kelp DAO’s rsETH bridge, which uses LayerZero, and stole roughly 292 million dollars in assets. They later sent about 30,766 ETH, worth around $68.8 to $70.5 million at the time, to the Arbitrum One network.
On April 20, the Arbitrum Security Council used emergency powers to freeze this ETH after it landed in a specific Arbitrum address. The funds were moved to a DAO‑controlled address that can now only be moved again with full governance approval. That decision turned the stolen ETH into a test case for how decentralized governance responds to a major cross‑chain hack.
What DeFi United Wants To Do With 30,766 ETH
Soon after the attack, Aave and other major DeFi projects created DeFi United, a joint recovery fund. Its goal is to restore rsETH’s backing and cover bad debt arising from stolen assets deposited with lenders such as Aave, Compound, and Euler.
DeFi United has already raised over 311 million dollars in ETH and stablecoins from ecosystem contributors. If Arbitrum DAO approves the proposal, the 30,766 frozen ETH would be the fund’s largest single contribution and, supporters say, speed up compensation for rsETH users and stabilize related markets.
The proposal asks Arbitrum token holders to approve sending the frozen ETH from the DAO address to DeFi United. Voting opened in late April and runs until May 7.
In the first hour, wallets holding about 16.9 million ARB supported the proposal, with no votes against. This strong early backing suggests broad support, though the decision becomes final only after the full voting period and once a quorum is reached.
The Kelp DAO exploit pushed stolen assets into several DeFi protocols, creating about $236 million in borrowing positions. This sequence of events strained users, liquidity pools, and risk systems across Arbitrum and beyond.
READ MORE: Top 4 Catalysts for Pi Network Coin Price in May 2026
