Andre Cronje, co-founder of Sonic Labs and founder of Flying Tulip, announced on the X platform that his team is conducting an in-depth investigation into the L0/rsETH incident. Preliminary reports indicate that the incident may have been caused by private key leakage or configuration errors, resulting in approximately $200 million worth of rsETH being stolen. These stolen assets were subsequently deposited into the Aave platform to collateralize borrowed ETH due to insufficient liquidity of rsETH.
Andre Cronje emphasized that while the affected positions technically still have collateral backing, in the event of bad debts, Aave's token mechanism and security module will bear the risk first. However, Aave has not established a mechanism to subsidize user losses, which could trigger a bank run. Currently, Aave holds approximately $7 billion in ETH and about $100 million in withdrawal capacity, so the overall impact of this incident is limited. Furthermore, to prioritize user liquidity, Flying Tulip has withdrawn all ETH from Aave to its fund management encapsulation contract, a decision made because Aave's available liquidity has fallen below its set minimum threshold.