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Aave has frozen the rsETH markets on Aave V3 and Aave V4.
Deep Tide TechFlow News, April 19th, regarding the KelpDAO attack incident, Aave tweeted that the rsETH market on Aave V3 and Aave V4 has been frozen. Aave stated that its contracts were not exploited, and this incident is related to the cross-chain bridge exploit involving Kelp DAO’s rsETH. The freezing measures will prevent new rsETH deposits and borrowing against rsETH as collateral. Aave is currently reviewing the lending and borrowing information involving rsETH on the platform after the exploit and has indicated that if the protocol incurs bad debt, it will explore solutions to cover the deficit.
Earlier reports indicated that the Kelp DAO cross-chain bridge was attacked, resulting in approximately $292 million worth of rsETH stolen, and Aave V3 faces a risk of bad debt.