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Aave Suspends rsETH Reserve Operations on Ethereum and Arbitrum to Mitigate Liquidation Risks
On April 23, Aave announced the latest developments regarding the rsETH security incident on the X platform. It disclosed that it has suspended rsETH reserve-related operations on the Ethereum mainnet and networks such as Arbitrum, Base, Mantle, and Linea to prevent excessive aETH rsETH from being withdrawn, which could push positions closer to the 95% liquidation threshold. This measure aims to preserve as much capital as possible during the asset recovery process and reduce systemic risk. Aave stated that further developments and disposal plans will be continuously disclosed to the community.