Key Takeaways:
- Kelp DAO has finished the recovery operation for rsETH.
- More than 116,000 rsETH have been restored to the LayerZero adapter.
- Aave confirmed all markets and rsETH operations are functioning normally.
Weeks after lending markets and cross-chain liquidity were disturbed by one of the biggest DeFi security events of 2026, Kelp DAO has completed the operational recovery of its restaked version of the Ethereum token, rsETH.
The protocol reported the transfer of its last batch of 20,373.72 rsETH to the rsETH OFT adapter, thereby concluding this restoration effort that postdated the attack that occurred in April.
Read More: Aave Unveils $71M rsETH Recovery Push as DAO Votes and Court Orders Align
Kelp DAO Completes Final rsETH Transfer
According to Kelp DAO, the latest transfer marks the final step in restoring the token’s backing and cross-chain infrastructure. In the last two weeks, around 116k rsETH has been reclaimed on the OFT adapter, which is powered by LayerZero, thanks to a coordinated effort between Kelp DAO and Aave.
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.
— Kelp (@KelpDAO) May 25, 2026
Since withdrawing and core functions have been re-activated, the protocol said that the ethereum delegation has been well-backed. From the restarting of the system, the redemption and minting and distribution of rewards have continued uninterrupted.
The shift is part of the liquidity recovery stage of the recovery plan, which focused on rebuilding liquidity reserves and guaranteeing that the quantity of spotted ‘bridged’ assets always matched the quantity of assets held in collateral on all supported networks.
Read More: $290M KelpDAO Hack SHOCK: LayerZero Points to Fatal DVN Flaw, Lazarus Suspected
Aave Confirms Markets Are Operating Normally
In the recovery plan, Aave is one of the world’s largest decentralized lending protocols waves that confirmed that the final tranche of rsETH was deposited into Aave’s lockbox.
All Aave markets are operating as normal, and there is no sign of activity in the Aave community related to rsETH, the lending platform has said.
Recovery Effort Followed Major Market Disruption
The recovery comes after the huge recovery that shook decentralized finance in April. The attacker was also reported to have extensively used a hugely increased amount of compromised rsETH from lenders markets to “shake” fairly much the liquidity markets and to cause concerns for bad exposures.
The event highlighted the close connection between the DeFi sectors, with problems quickly being transferred to the lending, liquid staking, and cross-chain sub-sectors.The incident revealed the interdependency of the different aspects of the DeFi industry by the leaks quickly being spread to all other sectors like using lended tokens for liquid staking or cross chain swaps for instance.
That hasn’t happened without reaction, since several industry participants have united themselves to intervene and reinstate the support of rsETH and make markets level again. This coordinated activity minimized further transmission and enabled them to restore their core functions of their protocol.
In addition to over 116,000 rsETH, the restoration has improved the token’s cross-chain infrastructure. During the transfer of rsETH between networks, the OFT adapter is a key part of the process when locking, minting, burning and releasing the tokens.
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The post Kelp DAO Restores 116K rsETH as Aave Confirms Full Recovery appeared first on CryptoNinjas.
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