Aave DAO Plans to Suspend AAVE Buybacks to Address rsETH Cross-Chain Vulnerability Risk

BroadChain learned that at 20:16 on April 27, Aave DAO is reviewing a proposal titled "[ARFC]" suggesting a suspension of AAVE token repurchases. The proposal states that due to an attack on Kelp's LayerZero rsETH cross-chain bridge on April 18, unbacked rsETH flowed into Aave V3 markets across multiple chains. Aave has urgently frozen rsETH and wrsETH-related reserves and adjusted WETH interest rates.

Given the uncertainty surrounding rsETH loss allocation, asset recovery, and the potential scale of bad debt, the proposal recommends suspending repurchases using protocol income to maintain the treasury for possible coordinated resolution plans. Subsequent repurchase arrangements will be reassessed based on developments.