Aave and several major crypto firms are coordinating a recovery effort to stabilize decentralized finance (DeFi) markets after a $292 million exploit left the sector's largest lender grappling with a large hole in collateral backing. The initiative, dubbed "DeFi United" and led by Aave service providers, is aimed at restoring the backing of rsETH, a yield-bearing derivative token of ether (ETH), that sits at the center of the exploit. Aave said in a post on X that multiple participants have already indicated commitments to support the effort. The first among them was staking provider Lido Finance, whose ecosystem contributor Lido Labs Foundation put forward a proposal to allocate up to 2,500 stETH, worth roughly $5.7 million at current prices, into a dedicated relief vehicle. The funds would be used to reduce the shortfall in rsETH backing and help prevent forced liquidations across lending markets. That was followed by EtherFi proposing a 5,000 ETH plan to "protect users and prevent bad debt" across DeFi. Stani Kulechov, founder of Aave, offered a 5,000 ETH contribution. "Aave is my life's work and we're working nonstop to find the best possible outcome for users," he said in an X post. "I’m working to see this resolved and market conditions normalized as soon as possible."