Aave Chan Initiative (ACI) founder Marc Zeller announced on the governance forum that due to risks associated with rsETH potentially leading to a shortage of wETH and bad debt risks for Aave V3 Core, ACI has decided to immediately halt the Frontier staking service program.
According to the announcement, all ETH staked through Frontier will be fully withdrawn and managed by Aave DAO to protect wETH depositors when necessary. Additionally, ACI stated that it will forgo any potential revenue and fees generated by the service prior to its exit.