Approve Release of Frozen ETH
AI summary
This proposal asks the Arbitrum DAO to release 30,765.67 ETH, currently frozen by the Arbitrum Security Council, to a coordinated recovery effort. This ETH was previously seized from an exploiter. The funds are intended to help restore the backing of rsETH, a liquid restaking token, which suffered a deficit due to an exploit outside of Aave's protocol. The goal is to make affected rsETH holders whole and stabilize the broader DeFi ecosystem.
If passed, 30,765.67 ETH (worth approximately $100 million at current prices) will be released to a recovery effort, directly benefiting rsETH holders by restoring their token's backing. This action aims to mitigate the negative impact of the exploit on Arbitrum users and the wider DeFi community, potentially stabilizing Aave's V3 Arbitrum market. If it fails, the ETH remains frozen, and the rsETH deficit persists.
Voting results
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🐳 Whale votes
5 votes > 5% VPFull proposal
Authors: Aave Labs, KelpDAO, LayerZero, EtherFi, Compound Proposal Type: Constitutional AIP Date: April 25, 2026
Abstract Aave service providers are working with the KelpDAO team, LayerZero team, EtherFi, Compound, and other ecosystem parties on a recovery effort, with the goal of making affected rsETH holders whole. This proposal asks Arbitrum Governance to approve the release of the 30,765.67 ETH immobilized by the Arbitrum Security Council into that coordinated remediation effort. Those funds are intended to be applied toward making affected rsETH holders whole, with the goal of restoring …