The Mantle community approves the proposal for Aave to borrow 30,000 ETH

The Mantle community has approved MIP-34, allowing Mantle Treasury to lend Aave DAO up to 30,000 ETH to cover bad debt in Aave V3 following the cross-chain bridge attack on rsETH by Kelp DAO on April 18.

The loan term is up to 36 months, with an interest rate equal to the Lido staking yield plus 1% per year. Early repayment is permitted without penalty, and the loan will be held in a multi-signature wallet prioritized by Mantle for collateralization.

In return, Aave must collateralize at least $11 million USD worth of AAVE and 5% of the protocol revenue. Mantle is also allocated 130,000 AAVE to participate in governance voting.

There are currently no additional details on disbursement timing or the roadmap for handling the bad debt in Aave V3. The approved content focuses on the financial support mechanism and collateral conditions between the two parties.

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