Aave Suspected of Incurring Bad Debt Due to rsETH Attack Incident, Specific Amount Temporarily Unclear

Odaily News: Due to the Kelp DAO attacker using stolen rsETH as collateral on Aave to borrow ETH, Aave is suspected of incurring bad debt, with the specific amount temporarily unclear.

Aave officially stated: "The rsETH markets on Aave V3 and Aave V4 have been frozen. We are reviewing the rsETH borrowing activity on Aave following the attack and will share more details as soon as possible. If the protocol has accumulated bad debt due to this incident, we will explore avenues to cover the shortfall."

OKX market data shows AAVE is currently trading at 105.15 USDT, down 9.56% in the past 24 hours.