Kelp Restores Full Collateral for rsETH Token

Kelp protocol restores rsETH collateral five weeks post-hack with final tranche.

The Kelp protocol has restored the collateral for the rsETH token five weeks after the hack. The team sent the final tranche of 20,373 rsETH to the LayerZero smart contract.

The final tranche of 20,373.72 rsETH has been sent to the rsETH OFT adapter earlier today. This closes the operational part of the rsETH recovery plan.

Tx: https://t.co/fB2HLWvggk

— Kelp (@KelpDAO) May 25, 2026

The $293 million incident triggered a liquidity crisis in the DeFi sector. The perpetrators used the stolen 116,500 rsETH as collateral on the Aave platform to obtain loans. This resulted in $190 million of “bad debt” and a massive outflow of funds from the lending protocol.

Funds for the recovery were gathered by Kelp with the support of the DeFi United initiative. Other crypto projects also participated in the plan’s implementation.

The first tranche of 25,000 rsETH was received on May 13, allowing the resumption of cross-chain bridges between the Ethereum mainnet and L2 solutions. The following day, developers reopened withdrawals. Burning and reward accruals are operating normally.

The Kelp hack contributed to the decline in the total value locked in the Aave protocol, which fell from $26.3 billion to $17.7 billion.

In April, a record number of hacks in the crypto industry was recorded for a single month. More than 20 incidents resulted in $651 million in damages.

In May, hacking attacks targeted Ekubo, TrustedVolumes, THORChain, Verus, Echo, and Map Protocol.