Aave will overhaul collateral requirements and adjust asset listing standards to address the KelpDAO vulnerability risk

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Mars Finance News, according to CoinDesk, Aave Labs will rewrite the asset listing and collateral risk control rules, adding reviews of compatibility, network security, and underlying architecture beyond existing price and volatility assessments, and will publish minimum standard guidelines for asset issuers. This move stems from the April attack on the KelpDAO cross-chain bridge, where hackers minted approximately $293 million in unbacked rsETH and lent out real wETH on Aave, resulting in billions of dollars in bad debt for the protocol. Aave will also shift from a single-pool perspective to studying systemic correlations between different DeFi protocols to reduce cross-protocol risks and calls on other DeFi projects to follow similar standards.

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