Key Takeaways:
Ethereum co-founder Joseph Lubin committed 30,000 ETH to support the recovery of the rsETH liquid restaking protocol on May 6, a move that shores up the project while championing a new model for on-chain financial management. The announcement, made as Ethereum traded between $2,355 and $2,408, frames the action as a key test for Ethereum Digital Asset Treasuries (DATs).
“We are backing unlevered ETH treasuries and committing 30,000 ETH to the rsETH recovery,” Lubin said, calling DATs a “profound innovation.” The direct intervention by a prominent founder provides a significant stability signal to a protocol navigating recovery, using a transparent, on-chain mechanism rather than a traditional bailout.
The 30,000 ETH commitment, valued at approximately $71 million, is designed to restore confidence in rsETH, a liquid restaking token. The concept of Digital Asset Treasuries involves protocols holding funds in transparent, smart-contract-based accounts that can be audited by anyone in real time. This contrasts with traditional corporate treasuries, whose holdings are disclosed in quarterly reports. According to data from DefiLlama, the total value locked (TVL) in the broader DeFi sector reached $172 billion by late 2025, with Ethereum-based protocols accounting for 68% of that total.
Lubin’s support for rsETH demonstrates a powerful use case for DATs, where foundational assets can be deployed to support ecosystem projects in a verifiable way. This action serves as a proof-of-concept for using on-chain treasuries to manage risk and ensure stability, a critical function as the DeFi space matures. The move also aligns with a broader industry shift toward ecosystem-wide support, as noted by Messari analyst Ryan Selkis, who recently said, “BTC at $78K lifts all boats; XRP’s utility shines in a rising tide, not in isolation.”
DeFi refers to a collection of financial services built on public blockchains, allowing users to lend, borrow, and trade without central intermediaries. The sector’s growth has been explosive, but has also been accompanied by exploits and volatility, making founder-led stability efforts a key development. Lubin’s action with rsETH can be compared to other large-scale ecosystem support funds, though its direct, on-chain nature sets it apart.
The commitment comes as institutional capital continues to flow into the digital asset space, often using Bitcoin as an initial entry point before rotating into higher-beta assets like Ethereum and other altcoins. Bitcoin’s market capitalization sits at roughly $1.33 trillion, an order of magnitude larger than Ethereum’s $233 billion, highlighting the potential for capital rotation to significantly impact Ethereum and its ecosystem. Lubin’s move can be seen as a strategic effort to strengthen a key DeFi protocol on Ethereum, making the ecosystem more resilient and attractive to incoming capital.
This article is for informational purposes only and does not constitute investment advice.
