Aave DAO proposal suspends AAVE buyback, to be reevaluated after the impact of the rsETH incident becomes clear

Deep Tide TechFlow message. On April 27, according to the Aave Governance Forum, service provider TokenLogic submitted an ARFC proposal on April 27, 2026, officially disclosing and confirming that AAVE buybacks have been paused since April 19.

The reason is that on April 18, Kelp’s LayerZero rsETH bridging route was hit by a vulnerability attack, resulting in under-collateralized rsETH flowing into Aave V3 multi-chain markets. The Aave protocol guardians and risk management teams then immediately froze all rsETH and wrsETH reserves and adjusted the WETH interest rates for the related deployments.

Due to significant uncertainty remaining around loss allocation, asset recovery, and DAO-level response plans, in order to preserve financial flexibility, the DAO decided to pause buyback operations to avoid compressing treasury reserves during the sensitive window. The proposal clearly states that the buyback cadence will be re-evaluated once the situation becomes clear, and any recovery plan will be communicated to the community through standard funding update announcements.

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