Aave announces the establishment of a recovery fund to promote full asset-backed recovery of rsETH

Aave announced that ecosystem partners and service providers will establish a recovery fund to promote the restoration of rsETH to full asset backing. This plan has taken into account the pending Aave DAO governance votes (including Arbitrum governance votes), indicative protocols, and subsequent successful execution.

Aave stated that it has reached an agreement with KelpDAO and LayerZero on the technical steps required to implement the recovery plan. Relevant work is underway, and addressing the issues of affected users and maintaining the stability of the broader DeFi ecosystem is the current top priority. The final recovery plan, user operation steps, and further updates will be announced soon.