Aave and Compound have unveiled a technical plan to mitigate the aftermath of the $290 million Kelp DAO hack, which exposed vulnerabilities in their systems. The plan aims to eradicate bad debt and reestablish full backing for the compromised rsETH tokens. This move is crucial in restoring investor confidence and preventing further financial losses. By addressing the technical flaws that led to the hack, these DeFi protocols can enhance their security posture and reduce the risk of similar incidents in the future. The implementation of this plan will likely involve a series of complex technical modifications, including updates to smart contracts and protocol architecture1. This development matters to practitioners because it highlights the importance of robust security measures in DeFi protocols, and the need for proactive measures to prevent and respond to potential exploits.