Key insights:
- Kelp and Aave burned exploiter rsETH on Arbitrum before starting the recovery refill plan.
- 117,132 rsETH will move into the LayerZero adapter over two weeks for backing support.
- Withdrawals may reopen after the first tranche reaches the mainnet OFT adapter this week.
- Kelp raised bridge checks to four attestors and 64 confirmations before reopening operations again.
Kelp and Aave have moved closer to reopening rsETH activity after a coordinated recovery step on Arbitrum. Kelp and Aave burned the exploiter’s rsETH and outlined a two-week refill plan for the token’s backing.
The update follows the April exploit linked to Kelp’s cross-chain rsETH setup. Reports placed the event near $292 million, while the recovery plan now centers on 117,132 rsETH.
Kelp and Aave Begin the rsETH Refill Plan
Kelp noted that it completed several steps with Aave to support rsETH backing. The process included burning the exploiter’s rsETH on Arbitrum, removing those tokens from active circulation. The next step will refill 117,132 rsETH into the LayerZero OFT adapter on Ethereum mainnet.
Kelp said the refill will come from Aave Recovery Guardian and Kelp Recovery Safe over two weeks. The amount was worth about $278 million at current prices, according to market reports.
Kelp said “rsETH on Mainnet and L2s remains fully backed at all times.”
The protocol said withdrawals may reopen within 24 hours after the first tranche reaches the adapter. It added that “all rsETH operations” will resume after contracts are unpaused. Those operations include deposits, redemptions, bridging, and claims. Kelp thanked Aave and DeFi United partners for supporting the recovery effort and technical process.
Security Settings Changed Before the Restart
Kelp also said it completed a security hardening pass across LayerZero bridging settings last week. Kelp and Aave changed how cross-chain verification works before restarting full rsETH activity. Verification now requires four independent attestors. Kelp also raised block confirmations from 42 to 64, and it removed all layer-2-to-layer-2 routes from service.
The changes were audited by BailSec. The protocol said it is also migrating to Chainlink’s CCIP for stronger cross-chain bridging controls. The update gives users a clearer timeline after rsETH services were paused. Withdrawals, redemptions, and bridging will return in stages once contracts are unpaused.
Aave also confirmed the recovery progress in a separate update. It said the first set of technical steps had been completed, including the rsETH burn on Arbitrum. The remaining work will focus on refilling the LayerZero adapter and reopening rsETH operations. The process will run through staged transfers rather than a single refill, as teams complete final technical checks.
Kelp expects normal rsETH activity to resume after the first tranche and contract restart. The two-week refill plan will also test the new security settings in live conditions. Kelp said its mainnet and layer-2 rsETH supply will remain backed throughout the recovery.
