Aave Founder Terminates Frontier Staking Plan, Transfers ETH to Aave DAO for Risk Mitigation

Odaily News: Marc Zeller, founder of the Aave Chan Initiative (ACI), stated in a governance forum post that due to risks associated with rsETH potentially causing a wETH shortage and bad debt issues in Aave V3 Core, ACI has decided to immediately terminate the Frontier staking service plan.

According to the announcement, all ETH staked through Frontier will be fully withdrawn and placed under the management of Aave DAO to be used, if necessary, to protect wETH depositors. Concurrently, ACI stated it will forgo all related potential revenue and fees accrued up to the point of withdrawal.