Aave Faces Potential Bad Debt Following rsETH Attack, Amount Yet to be Confirmed

Due to the attacker from Kelp DAO using stolen rsETH to collateralize and borrow ETH on the Aave platform, Aave may be facing bad debt issues, with the specific amount currently unclear. Aave's official statement reads: “We have frozen the rsETH markets on Aave V3 and Aave V4. We are reviewing the rsETH borrowing information on Aave following the attack and plan to share more relevant details as soon as possible. If this incident results in bad debt for the protocol, we will consider measures to mitigate the losses.” According to market data from OKX, the current price of AAVE is 105.15 USDT, having dropped 9.56% in the past 24 hours.