Quick update: The first tranche of rsETH has been transferred by @aave into the LayerZero OFT Adapter per the coordinated restart plan agreed with Kelp. Bridging is now resumed. Users can move rsETH in and out of L2s from mainnet freely now. 1.⁠ ⁠rsETH contracts will be unpaused for withdrawals within the next 24h. 2. Deposits will reopen, and exchange rates will update within 48 hours. This will accrue the staking rewards from the pause period to all the rsETH holders. Remaining tranches from Aave's recovery guardian and Kelp will be sent over the next 2 weeks to fully refill the lockbox. Transaction:

Kelp and Aave have successfully completed a series of steps for rsETH backing, including burning the exploiter’s rsETH on Arbitrum. 117,132 rsETH will be progressively refilled from Aave Recovery Guardian and Kelp Recovery Safe into the LayerZero OFT adapter on mainnet over the next two weeks. rsETH on Mainnet and L2s remains fully backed at all times. Kelp will unpause withdrawals, tentatively within 24 hours, after the first tranche to the LayerZero OFT adapter. All rsETH operations - deposits, redemptions, bridging, and claims - will resume as usual after contracts are unpaused. Last week, we completed a security hardening pass across all LayerZero bridging configurations: verification now requires 4 independent attestors, block confirmations have been raised from 42 to 64, and all L2-to-L2 routes have been deprecated. These changes have been audited by BailSec. We are in the process of migrating to CCIP for further strengthened cross-chain bridging. Thanks to the @aave team and our DeFi United partners for being the cornerstone of this recovery.

In response to the KelpDAO rsETH incident, Euler has liquidated the attacker’s remaining positions on Ethereum. Collateral recovered through those liquidations has been moved to the Euler DAO operational multisig while next steps are assessed. No other user positions were affected by this action.

Update on Ongoing Kelp Incident - EarnETH first-loss protection coverage below 1% threshold has been approved - stETH transferred to DeFi United relief initiative - Attackers rsETH has been liquidated - EarnETH vault operations to resume as soon as Kelp protocol is unpaused ↓

Thanks to the 1,600+ addresses representing over 190 million ARB tokens who have voted on unfreezing the ETH related to the April 18 rsETH incident, currently held by the Arbitrum DAO. Reaching quorum with a strong show of approval from delegates and the Arbitrum community is a major positive signal for the ongoing DeFi United recovery effort to support affected users. Snapshot here:

As part of the technical implementation plan for rsETH recovery, the attacker’s position has now been liquidated on both Ethereum and Arbitrum. This was an incredible technical effort by all contributors involved. Following up with the next steps shortly.

In line with the technical plan outlined below, the attacker's rsETH positions on Aave have been liquidated on Ethereum and Arbitrum. The liquidated collateral now sits with the Recovery Guardian as specified in the AIP. No other users were affected, and Umbrella was also untouched. This was a critical step in the recovery roadmap, with next steps to follow.

After the recent LayerZero exploit, we are taking steps to ensure rsETH is fully secure, which is why we are migrating to @chainlink CCIP. From the April 18 incident, it is clear that LayerZero's own infrastructure was exploited, resulting in $300M in losses across DeFi. Independent reports from SEAL 911, Chainalysis, and other major leading security researchers all point to the same origin. There are questions that the ecosystem deserves answers to. And we are ensuring rsETH is secured by infrastructure that doesn't leave these questions open. That’s why we’re setting the record straight.

Kelp and @aave have been working closely with ecosystem partners since April 18 to coordinate a recovery effort for rsETH holders. We want to share some factual statements about where we are, progress made, and the next steps. @ether_fi @ethena @LidoFinance @golemproject @inkfndhq @tydrohq @Mantle_Official @fraxfinance and layerzero have each committed in best capacity. We greatly appreciate their contributions. More announcements to follow. The initial shortfall from the incident was 163,200 ETH. Kelp recovered 40,300 rsETH (~43,000 ETH), while the @arbitrum Security Council secured another 30,700 ETH. Following these recoveries, the remaining shortfall stands at approximately 89,500 ETH. Of that remaining gap, confirmed public commitments from Mantle, Stani, EtherFi, Lido, Golem total 43,500 ETH. Kelp has been in direct conversations with partners in this effort to formalize the contributions. rsETH holders come first, and that’s been our priority since day 1. We will continue sharing updates as further commitments are confirmed. DeFi United.

Community Update The past few days have been relentless. With the support of our partners, allies and community, discussions are moving in the right direction. We want to address our community directly. We are actively progressing towards a suitable resolution. Kelp was built on the core principle that users will always come first. This has been evident in our initial actions and will continue to be reflected in the updates to come, which we aim to deliver in a way that benefits everyone. Over the past four days, our team, alongside partners and allies, has been operating around the clock and engaging closely with all involved parties. We have made meaningful progress across several paths forward in collaboration with key ecosystem partners. This progress is reflected in concrete actions, including measures taken by the @arbitrum Security Council to freeze stolen funds and the swift involvement of @_SEAL_Org's SEAL 911 force in the initial investigation, providing all parties with clear and impartial insight into what occurred. While not all of this is visible publicly, the work continues steadily and with substance. At present, all our attention and efforts are directed towards safeguarding our users and strengthening the protocol. Moments like this are defining not only for us but for the broader ecosystem. We believe it is our responsibility to pursue the most appropriate outcome for our users. We are grateful for the support and collaboration we have received from partners and the wider community. We will continue to share concrete updates through our official channels as they become available. - Team Kelp