Aave announces the second phase recovery plan for the rsETH event, with key progress made in recovering $71 million worth of ETH

Deep Tide TechFlow News, May 9th,
The official Aave statement issued on May 9th,
Aave announced the progress of the second phase of the rsETH incident recovery technical plan,
The preliminary plan released on April 28th has made substantial progress.

Progress completed: May 6th,
The thief liquidated eight identified positions on Aave V3 Ethereum core and Arbitrum,
The recovered rsETH collateral has been transferred to the recovery guardian in accordance with the Aave DAO governance-approved AIP,
Other users and Umbrella stakers were not affected.
Meanwhile, Mantle DAO and Arbitrum DAO have both passed relevant governance proposals,
The Arbitrum DAO proposal aims to return the $71 million ETH recovered from the thief to Aave protocol users,
The proposal has reached the quorum and was overwhelmingly approved.

On the legal front, on May 1st, an injunction was issued against North Korea targeting Arbitrum DAO,
Attempting to freeze the aforementioned $71 million ETH.
Aave LLC immediately filed an emergency motion,
After a hearing on May 6th, the court accepted Aave LLC’s plan,
Authorized the on-chain Arbitrum DAO vote to transfer the frozen ETH to Aave LLC,
The injunction was attached to the transfer of Aave LLC.
During the court review, Aave will borrow additional funds as an emergency reserve,
To cover the funding gap.

Next steps:
rsETH obtained from liquidation on Arbitrum will be burned,
Kelp will simultaneously cancel the corresponding LayerZero cross-chain message package on Ethereum,
To neutralize the excess rsETH supply caused by the vulnerability;
The rsETH confiscated on Ethereum will be stored in the bridge lockbox,
Combined with ETH raised by the DeFi United alliance,
To jointly restore the funds supporting the lockbox contract,
Once completed, the bridge will resume normal operation,
rsETH withdrawal will be reopened;
Additionally, the loan-to-value ratio (LTV) of WETH on Aave V3 Ethereum core will also be restored to normal levels.