Gate News message, April 26 — A coalition of major DeFi protocols led by Aave Labs, joined by Kelp DAO, LayerZero, EtherFi, and Compound, filed a Constitutional AIP on Saturday morning asking the Arbitrum DAO to release approximately $71 million in frozen ETH to support DeFi United, a cross-protocol relief effort launched following last week’s $292 million Kelp DAO exploit.
The proposal seeks the release of 30,765.67 ETH that the Arbitrum Security Council froze and transferred on April 21 after tracing the tokens to addresses controlled by the exploiter. At the time of writing, with ETH trading near $2,317, the frozen balance totals just over $71.3 million. Under the proposal, the funds would be transferred to a 2-of-3 Gnosis Safe co-signed by Aave, Kelp DAO, and Certora, designated solely to receive recovered ETH and apply it toward restoring rsETH’s economic backing.
The Constitutional AIP process carries an estimated timeline of roughly 49 days, including a week of forum discussion, an optional one-week temperature check, a three-day voting delay, a 14- to 16-day onchain vote, an eight-day L2 waiting period, an L2-to-L1 message finalization step, and a final three-day L1 wait before execution. Within hours of filing, community delegates called for expediting the process, with Arbitrum Security Council member Griff Green supporting a move to Snapshot voting “as soon as possible to validate the community’s intent and avoid unnecessary delays.”
The 30,766 ETH would represent the single largest contribution to DeFi United to date. Other proposed contributions include Aave’s 25,000 ETH DAO commitment, Lido’s 2,500 stETH, 5,000 ETH each from EtherFi and Aave founder Stani Kulechov, and a 30,000 ETH credit facility from Mantle to absorb residual bad debt. The proposal also includes an extensive indemnification clause under which Aave Labs would indemnify the Arbitrum Foundation, Offchain Labs, and each Arbitrum Security Council member from claims arising from the freeze or proposed release.
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