May 4, 2026 — Update
Stablecoin liquidity is restored. USDC, USDT, and USDe on Aave v3 Ethereum Core are off the 100% utilization peg. Stablecoin borrow rates are back in the 3-5% range (vs the ~14% ceiling they were pinned at last week). Withdrawals are clearing normally. Fresh supply from various sources along with organic borrower repayment was enough to break the deadlock.
Technical recovery plan published and beginning execution. On April 28, DeFi United published the formal recovery implementation. Two parallel tracks:
Tranched conversion of committed ETH into rsETH, deposited into the LayerZero adapter to refill the lockbox to its 1.07 ETH per rsETH ratio.
Controlled liquidation of the 8 attacker positions on Aave Ethereum Core and Arbitrum via a temporary, governance-approved rsETH oracle price adjustment. All Aave configuration changes are explicitly temporary and reverted on completion.
Total committed funding stands at ~132,650 ETH (~$303M), comfortably above the $124M-$230M bad debt range. Aave's smart contracts remain unchanged throughout.
Kiln status.