DeFi

Kelp DAO and Aave will resume rsETH operations following a $292 million exploit. Recovery is progressing.

Arbitrum DAO Approves $70M ETH Release for Kelp DAO Recovery Arbitrum DAO has voted to approve the release of approximately $70 million in ETH to recover funds related to the Kelp DAO incident. However, a May 1 court order restricted Arbitrum DAO from moving the recovered funds, prompting Aave to file an emergency application to lift the restrictions. This marks an increasingly complex interaction between decentralized governance and the judicial system. The Arbitrum community had previously voted to recover funds transferred due to a Kelp DAO bridge vulnerability, but legal uncertainty has stalled the transfer process. ...

Leading DeFi protocol Aave has announced a comprehensive overhaul of its collateral and listing standards in response to risk management issues exposed by the recent KelpDAO exploit. As one of the largest lending protocols in DeFi, Aave’s move aims to strengthen protocol security and prevent similar incidents. The reforms are expected to impact collateral parameters for multiple listed assets.

Multiple crypto industry executives have reached a consensus that DeFi is not dead but is instead going mainstream through AI agent technology. AI agents can autonomously execute trades and manage portfolios, bringing entirely new user groups to DeFi protocols. This trend signals a deep convergence of crypto finance and traditional AI technology.

Kelp DAO has migrated from LayerZero to Chainlink’s cross-chain infrastructure following a $292 million bridge exploit and a blame dispute between the two protocols.

[Flash] The CFTC is considering writing rules to further cement its stance on whether software developers should register as brokers with the agency, following its no-action letter to Phantom wallet. The move aims to provide clearer regulatory framework for non-custodial software development in the crypto industry.

Ledger integrates Hyperliquid perpetuals trading into hardware wallets through Yield.xyz partnership.

Crypto platform Drift outlines recovery plan after a $295 million exploit linked to North Korean hackers, one of the largest crypto hacks of 2026.

Financial tech company SoFi plans to launch a stablecoin on Solana, citing speed and low transaction costs.