Aave Risk Model Calculates Two Bad Debt Scenarios for Kelp DAO Vulnerability

BroadChain has learned that at 13:16 on April 21, according to Cointelegraph, Aave risk managers simulated two bad debt scenarios in response to the Kelp DAO vulnerability incident. The first scenario is significantly cheaper but carries the risk of causing rsETH to depeg by approximately 15%; the second scenario is more costly but better protects the Ethereum mainnet and concentrates the losses at the Layer 2 level.