Wu said that LlamaRisk (Aave DAO risk service provider) released the "rsETH Incident Report," which quantifies the potential bad debt impact of the rsETH incident on Aave and presents two main scenarios: one is that all rsETH holders share the loss evenly, with approximately a 15.12% write-down, corresponding to about $123.7 million in bad debt; the second is that the loss is concentrated on L2 rsETH, requiring about a 73.54% write-down, corresponding to approximately $230.1 million in bad debt, mainly borne by chains like Mantle, Arbitrum, and Base; the report also points out that currently, multi-chain WETH reserves utilization has reached 100%, with idle balances less than $20, limiting liquidation liquidity and potentially amplifying risk transmission; in terms of response, it is recommended to immediately suspend the WETH Umbrella module to preserve coverage capacity, and have the Aave DAO treasury collaborate with ecosystem participants to handle potential bad debts, with the ultimate impact still depending on Kelp's loss allocation and fund recovery progress.

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