Lido proposed using up to $5.8 million of stETH to fill Kelp's funding gap.

Lido has proposed that the DAO allocate up to 2,500 stETH (approximately $5.8 million) to cover the rsETH asset shortfall caused by the recent attack on the Kelp DAO. Lido points out that the LayerZero exploit has resulted in insufficient rsETH reserves and triggered a chain reaction in the DeFi ecosystem, including increased interest rate pressure, strained lending markets, and the risk of passive liquidation for some leveraged strategies. The proposal emphasizes that this funding will only be used as part of a complete recovery plan, provided the overall shortfall can be fully filled. Previously, the approximately $292 million attack on the Kelp DAO affected Aave, causing bad debt issues and a drop in its total value locked (TVL) of nearly $8 billion.