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Aave DAO community initiates an ARFC proposal to officially suspend AAVE token buybacks.
Previously, on April 18, Kelp's LayerZero rsETH bridging vulnerability caused uncollateralized rsETH to flow into multiple Aave V3 markets across chains, and the protocol has taken risk control measures such as freezing related assets.
The proposal states that, until losses are allocated and potential bad debts are clarified, buybacks will be suspended to preserve funding flexibility.
The suspension has been in effect since April 19, and the resumption time will be determined after further assessment.