Aave has successfully completed the liquidation of the remaining rsETH positions held by the KelpDAO attacker. The collateral assets from these positions will be transferred to a multisig wallet managed by DeFi United, known as the Recovery Guardian, to restore the rsETH reserve and compensate affected users. This action is part of the recovery plan following a $292 million attack.
The liquidation process was initiated after Aave temporarily adjusted the rsETH oracle price through a governance vote, creating insolvent positions for the attacker and triggering liquidation. These parameters will revert to normal following the completion of the liquidation. The attacker had previously exploited a LayerZero-based cross-chain bridge operated by KelpDAO to forge 116,500 uncollateralized rsETH and borrowed ETH on platforms like Aave and Compound. Recovery funds related to DeFi United now exceed $320 million.
Aave Finalizes Liquidation of KelpDAO Attackers' rsETH Holdings
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