Aave Restores Asset Backing for rsETH with Collaborative Recovery Plan

Aave has taken steps to address the issue of undercollateralization affecting its Ethereum token, rsETH. In a collaborative effort with KelpDAO and LayerZero, a recovery fund has been established to restore full asset backing for rsETH.

The plan takes into account outstanding Aave DAO governance votes, including those on Arbitrum, as well as indicative protocols that may be required for successful execution. Technical steps have been agreed upon by all parties involved.

Addressing the concerns of affected users and maintaining the stability of the broader DeFi ecosystem are currently the top priorities. The final recovery plan, user operation procedures, and further updates will be announced soon.