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Circle Ventures buys AAVE tokens, joining DeFi United alongside Consensys

Circle Ventures buys AAVE tokens, joining DeFi United alongside Consensys

Consensys, together with Ethereum co-founder Joseph Lubin, has joined the rsETH recovery effort with up to 30,000 Ethereum in funding.

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by Vivian Nguyen

Circle Ventures is acquiring AAVE tokens in a show of support for the decentralized finance ecosystem, becoming the latest entity to join DeFi United, a multi-party recovery initiative led by Aave service providers in response to the April 18 rsETH incident.

“Strong DeFi infrastructure does not build itself,” Circle Ventures said in a Monday statement. “Aave is helping to shape the future of onchain finance, and we’re backing that ecosystem and the entire community built around it.”

The move expands a growing list of supporters rallying behind DeFi United. In an announcement today, Consensys, MetaMask’s parent company, and CEO Joseph Lubin said they contributed up to 30,000 ETH toward the rsETH recovery. Sharplink, which Lubin also leads, is providing ongoing strategic advisory support to Aave.

The exploit

On April 18, an attacker exploited a bridge configuration to trick a cross-chain mechanism into releasing roughly 116,500 fraudulent rsETH tokens, a liquid restaked derivative tied to Ethereum staking.

The exploit drained collateral pools across several protocols. Aave, which governs more than $10 billion in total value locked, took a large share of the damage. WETH pool utilization hit 100%. Bad debt exceeded $177 million.

The response

DeFi United formed in the days following as a coordinated relief effort led by Aave service providers. The goal is to restore rsETH’s collateral backing so that market conditions can normalize across Ethereum, Arbitrum, and other affected networks.

The campaign has already pulled in over $237 million in commitments from more than 116,000 wallets.

Arbitrum DAO has a pending vote for 30,765 ETH. Mantle is considering 30,000 ETH. Aave DAO itself is voting on 25,000 ETH. Stani Kulechov, Aave’s founder and CEO, committed 5,000 ETH from his own holdings.

Ether.Fi, Lido, Kelp, Golem Foundation, BGD Labs, and others have pledged amounts ranging from 350 to 5,000 ETH each.

The Solana Foundation has also stepped in to support Aave’s recovery by deploying treasury assets in Tether into Aave for the first time, according to chair Lily Liu, and is also preparing to bring Aave’s governance token to Solana.

Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.
DEFI

Circle Ventures buys AAVE tokens, joining DeFi United alongside Consensys

Circle Ventures buys AAVE tokens, joining DeFi United alongside Consensys

Consensys, together with Ethereum co-founder Joseph Lubin, has joined the rsETH recovery effort with up to 30,000 Ethereum in funding.

by Vivian Nguyen

Share

Add us on Google

Circle Ventures is acquiring AAVE tokens in a show of support for the decentralized finance ecosystem, becoming the latest entity to join DeFi United, a multi-party recovery initiative led by Aave service providers in response to the April 18 rsETH incident.

“Strong DeFi infrastructure does not build itself,” Circle Ventures said in a Monday statement. “Aave is helping to shape the future of onchain finance, and we’re backing that ecosystem and the entire community built around it.”

The move expands a growing list of supporters rallying behind DeFi United. In an announcement today, Consensys, MetaMask’s parent company, and CEO Joseph Lubin said they contributed up to 30,000 ETH toward the rsETH recovery. Sharplink, which Lubin also leads, is providing ongoing strategic advisory support to Aave.

The exploit

On April 18, an attacker exploited a bridge configuration to trick a cross-chain mechanism into releasing roughly 116,500 fraudulent rsETH tokens, a liquid restaked derivative tied to Ethereum staking.

The exploit drained collateral pools across several protocols. Aave, which governs more than $10 billion in total value locked, took a large share of the damage. WETH pool utilization hit 100%. Bad debt exceeded $177 million.

The response

DeFi United formed in the days following as a coordinated relief effort led by Aave service providers. The goal is to restore rsETH’s collateral backing so that market conditions can normalize across Ethereum, Arbitrum, and other affected networks.

The campaign has already pulled in over $237 million in commitments from more than 116,000 wallets.

Arbitrum DAO has a pending vote for 30,765 ETH. Mantle is considering 30,000 ETH. Aave DAO itself is voting on 25,000 ETH. Stani Kulechov, Aave’s founder and CEO, committed 5,000 ETH from his own holdings.

Ether.Fi, Lido, Kelp, Golem Foundation, BGD Labs, and others have pledged amounts ranging from 350 to 5,000 ETH each.

The Solana Foundation has also stepped in to support Aave’s recovery by deploying treasury assets in Tether into Aave for the first time, according to chair Lily Liu, and is also preparing to bring Aave’s governance token to Solana.

Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.