TechFlow News, April 29: Mike Silagadze, CEO of ether.fi, posted on X explaining why the company pledged 5,000 ETH to the Kelp hack recovery fund. He stated that the incident posed a “real risk of destroying the entire DeFi ecosystem”: if Kelp were to go bankrupt, $1.5 billion worth of rsETH could be frozen long-term, potentially paralyzing Aave’s $30 billion lending market and triggering a cascading collapse across both DeFi and CeFi—adding that “FTX pales in comparison.” Silagadze further noted that while most institutions chose to retreat and hand matters over to lawyers, proactively assuming responsibility and swiftly raising funds to patch the gap was the right choice to avert the worst-case scenario.
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