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), at the center of the exploit.

Aave said in a post on X that multiple participants have already made indicative 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,…