Compound Proposes Up to 3,000 ETH for rsETH Recovery
Compound proposed up to 3,000 ETH on April 28 to join DeFi United’s rsETH recovery, part of a 14-protocol effort to recover roughly 16,776 ETH after an April 18 exploit.
On April 28, Compound proposed contributing between 1,900 and 3,000 ETH to DeFi United’s effort to restore rsETH backing after an April 18 exploit. The proposal seeks in-principle approval from the Compound community and would place the final contribution amount under the control of the Compound Governance Working Group.
The range equals about $6.9 million at current prices. The submission ties roughly 1,857 ETH of the commitment to the successful recovery of an active attacker position and requires a clear execution plan before any funds are released. The DAO would keep the option to scale back or withdraw support if conditions are not met.
DeFi United’s technical plan targets recovering about 16,776 ETH from exploiter positions on Compound while pursuing a separate recovery of about 13,000 ETH from Aave. The recovery framework requires full restoration of rsETH collateral, equal treatment for affected users, a transparent execution timeline and regular governance updates.
The proposal joins a 14-protocol coalition that has pledged more than $161 million in ETH commitments. Consensys and Ethereum co-founder Joe Lubin committed 30,000 ETH. Aave pledged 25,000 ETH and founder Stani Kulechov added a personal commitment of 5,000 ETH. Mantle provided a 30,000 ETH credit facility and Lido committed up to 2,500 stETH. Governance votes remain pending across several participating protocols.
Joe Lubin called DeFi United “a broad, coordinated response to protect users and strengthen the infrastructure.” The Avalanche Foundation noted the sector was undergoing a public stress test while recovery work proceeded with transparent records and accountability.
Protocol-governance approval is required for many pledged contributions. If votes and technical recovery steps proceed, working groups will finalize operational details and the exact ETH amounts. Transfers will depend on subsequent votes, third-party security confirmations or audits. If recovery conditions cannot be met, participating DAOs may withhold or reduce support.
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