Aave has taken a significant step towards stabilizing its balance sheet by liquidating the attacker's rsETH positions on both Ethereum and Arbitrum.
This move is part of the protocol's ongoing recovery efforts following the April exploit, which involved unbacked assets being used to borrow funds across DeFi protocols.
The liquidation has secured collateral under Aave's Recovery Guardian, reducing bad debt exposure and marking progress in the protocol's recovery process.
Aave noted that additional steps are expected as part of its recovery roadmap, although details have yet to be fully outlined.