Preferring saving rsETH on mainnet would lead to $124M in bad debt (1.54% shortfall).Socializing losses would lead to $230M problem, concentrated on L2s.Mantle would get rekt hardest at 71% WETH loss. Arbitrum at 27%. https://t.co/hclrDQfcKgAave (@aave):Update on rsETH incident:@LlamaRisk has published a report outlining the rsETH incident, the immediate actions taken, its impact on Aave, and potential paths forward.All service providers have been working to assess the two potential bad debt scenarios on th ...

DeFiLlama Co-founder 0xngmi on Kelp DAO rsETH Hack – 3 Potential Paths:Socialize losses across all users18.5% haircut → ~$216M bad debt on Aave.Umbrella covers $55M, Aave treasury covers $85M, leaving $76M gap (can be filled by borrowing or selling ~$51M AAVE from treasury).Rug rsETH holders on L2sCreates ~$341M bad debt on Aave (mainly Arbitrum, Mantle, Base).No Umbrella coverage — Aave would have to absorb everything.Compensate using pre-hack snapshotVery difficult due to heavy fund flows and pooled liqui ...

United Arab Bank is exploring the sale of roughly $800 million in bad debt https://t.co/XGhZf2SVtU ...