According to a recent LinkedIn post from CoinDesk, a coalition of decentralized finance projects, including Aave, is working to mitigate losses from the recent Kelp DAO hack. The initiative, called DeFi United, plans to pool ETH donations and use ETH loans to support rsETH that was taken from Kelp DAO and moved into other protocols such as Aave and Compound.
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The post highlights that this response raises a broader governance and risk question within DeFi about who should ultimately absorb the losses from security failures. Commentary from Lygos Finance CEO Jay Patel on CoinDesk’s Blockspace Live podcast is presented as exploring these issues, which may influence how investors assess protocol risk allocation, user protections, and the resilience of DeFi platforms involved in the incident.