Let's talk about today's big news

LayerZero Labs finally came out and admitted: the issue with rsETH was caused by a vulnerability in our bridge to DVN.

How to compensate? Directly pay 10k ETH (about $23 million)—5,000 ETH donated to DeFi United, and 5,000 ETH directly injected into the Aave market to boost liquidity.

Including previous contributions, DeFi United has now raised over 140k ETH (about $330 million).

Consensys, Arbitrum DAO, Aave DAO, Compound, Mantle, LayerZero... all the big names are involved.

This is the largest industry-led rescue effort in DeFi history. A systemic crisis triggered by a single vulnerability, ultimately covered by the entire industry pooling funds.

LayerZero admits fault and pays up, while the Arbitrum Security Committee has yet to unfreeze the $71 million worth of ETH—still frozen to this day.

The absurdity of this situation is akin to your house catching fire, neighbors bringing buckets to help, but your security guard locking your water faucet—saying, "We are exercising emergency powers."

Where exactly are the boundaries of DAO's "emergency powers"?

Who appointed the Arbitrum Security Committee? The DAO.

Do they have the authority to freeze assets in an "emergency"? Yes, as written in the code.

But the question is—who defines what is "urgent"? When to freeze? When to unfreeze? Who supervises? Who is held accountable?

Many think: it’s just a freeze, for safety’s sake, just endure it.

Let me tell you why that’s not acceptable:

First, this is selective decentralization

In emergencies, use authority to freeze assets. When it comes to accountability, shift blame to decentralization. All the benefits are taken, all responsibility is avoided.

Second, setting a bad precedent

Today Arbitrum can freeze $71 million, tomorrow could it be Optimism? The day after zkSync? Later, could a security committee of some other L2 directly "protectively freeze" your wallet’s funds?

Third, the more successful the industry’s self-rescue, the easier it becomes to hide governance issues

Everyone is busy raising funds to patch holes; who’s left to ask, "Who approved the freeze"? Once the hype dies down, no one will bring it up anymore.

I’m not saying security committees shouldn’t exist. Emergency response capabilities in extreme situations are indeed necessary.

But power must come with transparency and accountability.

A clear set of rules is needed:

- What qualifies as "urgent"?

- What is the maximum duration?

- What happens if it exceeds the limit?

- How to compensate for wrongful freezes? #Aave联合多方启动rsETH全额资产修复计划 $ETH