Mantle OKs 30,000 ETH loan to Aave to cover rsETH losses
Mantle tokenholders approved a seven-day vote authorizing up to 30,000 ETH from the Mantle Treasury as a loan to Aave DAO to address bad debt from April’s rsETH exploit.
Mantle tokenholders approved a seven-day Snapshot vote that authorizes a credit facility of up to 30,000 ETH (about $68 million) to Aave DAO to address bad debt from the April rsETH exploit. The measure, MIP-34, passed Friday and permits the Mantle Foundation to negotiate and execute loan agreements with Aave, subject to Aave carrying out its recovery plan and the parties finalizing terms.
The proposal states the attacker deposited 89,567 unbacked rsETH on Aave and borrowed roughly $190 million in WETH, wstETH and stablecoins. The resulting potential bad debt is estimated between $123.7 million and $230.1 million. The authorized facility is meant to address the shortfall on Aave V3 that created liquidity stress across several lending markets.
An analysis of market data found Aave’s Wrapped Ether (WETH) market experienced a prolonged squeeze after the exploit, with utilization remaining above 99% for 12.7 days and averaging about 99.6% before easing to roughly 98.47% by the end of the tracked period. High utilization indicates most supplied WETH had been borrowed, leaving little idle liquidity for withdrawals.
On-chain data show conditions have eased from those peak levels. Aave’s Ethereum V3 WETH market had around 91.6% utilization on Friday, with approximately 2.02 million WETH supplied and 1.85 million WETH borrowed, reflecting partial recovery of available liquidity.
MIP-34 delegates authority to the Mantle Foundation to finalize the lending arrangements. The credit facility can only be drawn if Aave implements the recovery measures outlined in its remediation plan and the two parties agree on definitive terms. The structure positions the Mantle Treasury as a potential backstop while Aave works on loan repayment, bad-debt resolution and market stabilization.
The proposal follows earlier emergency actions taken after the exploit and sets a path for a coordinated financial remediation between Mantle and Aave aimed at restoring liquidity and addressing losses in affected lending pools.
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