BroadChain learned that on April 27, 2026, the Aave governance forum disclosed that service provider TokenLogic submitted an ARFC proposal on the same day, officially confirming the suspension of AAVE token repurchases starting April 19. This move stems from a vulnerability attack on Kelp's LayerZero rsETH bridge route on April 18, leading to undercollateralized rsETH flowing into the Aave V3 multi-chain market.
The Aave protocol guardian and risk team subsequently froze all rsETH and wrsETH reserves and adjusted the WETH interest rates for related deployments. Given significant uncertainties regarding loss allocation, asset recovery, and DAO-level countermeasures, the DAO decided to suspend repurchases to preserve financial flexibility and avoid depleting treasury reserves during a sensitive period.
The proposal clearly states that the repurchase plan will be reassessed once the situation becomes clearer, and any restart plan will be communicated to the community via a standard treasury update announcement.