Arbitrum DAO Votes Its Kelp ETH for AAVE-Led DeFi United

Arbitrum DAO is discussing releasing the 30.766 ETH transferred by the Kelp DAO attacker to an Arbitrum One address to the DeFi United initiative through a vote by ARB token holders. The vote received strong ‘yes’ support with 16.9 million ARB in the first hour; no ‘no’ votes and it will continue until May 7. This move aims to redirect the frozen funds to rescue the DeFi ecosystem. The Arbitrum Security Council‘s quick intervention reflects the community’s urgent response. Suspicion that the attacker is linked to North Koreas Lazarus Group heightens the criticality of the incident.

Arbitrum DAO Kelp DAO Attack and ETH Freezing Process

On April 20, the Council locked 71.1 million dollars worth of ETH to limit the attack. Funds were transferred to the 0x0000000000000000000000000000000000000DA0 address; DAO approval required. Hackers withdrew 18% of Kelps rsETH (292 million dollars) and transferred it to AAVE Detailed Analysis, Compound, and Euler, creating 236 million dollars in debt. Protocols paused contracts; the Council used emergency powers with a 12/9 vote. Some criticized centralization, while others defended the ecosystem mandate.

DeFi United Solidarity Led by AAVE

DeFi United was established under Aave‘s leadership and collected 311 million dollars in ETH/stablecoin. If approved, Arbitrum will make the largest contribution; Consensys (Joseph Lubin 30K ETH), Mantle (30K ETH loan) to follow. Stani Kulechov, LayerZero, and Kelp provided support. This demonstrates DeFi’s crisis organization power.

AAVE Price: Critical Support and Resistance Levels

• Price: $92.72 | 24h Change: -0.58% | RSI: 43.41 (Downtrend, Supertrend Bearish)
• Supports: S1 $91.70 (⭐ Strong, -1%) | S2 $86.34 (⭐ Strong, -6.78%)
• Resistances: R1 $93.94 (⭐ Strong, +1.42%) | R2 $101.87 (⭐ Strong, +9.99%)
• EMA 20: $96.09 – News flow could support AAVE.

Arbitrum DAO Vote and Frequently Asked Questions About AAVE

• When will the vote end？ Until May 7; currently 100% yes.
• How does DeFi United affect AAVE？ 30K+ ETH contribution strengthens lending protocols.
• Did the Kelp attack drop ARB price？ Short-term pressure; strong recovery signal.