Aave Rolls Out rsETH Compensation Checker as Recovery Plan Moves to Overissuance Fix

May 9 (BlockBeats) — Aave has detailed phase two of its technical recovery plan following the rsETH incident, shifting focus to resolving overissued rsETH and restoring normal market function. Aave first disclosed its Aave V3 recovery solution on April 28 for the rsETH attack, reporting material progress across Ethereum Core and Arbitrum. On May 6, eight attacker-controlled Aave V3 positions were liquidated. The recovered rsETH collateral has been transferred to the Recovery Guardian in line with the relevant AIP. Aave said other users, including Umbrella stakers, were not affected. On the governance front, proposals at both Mantle DAO and Arbitrum DAO have passed. Arbitrum DAO approved returning $71 million worth of ETH recovered by its Security Council to Aave, earmarked for the DeFi United joint recovery effort. Aave also cited positive legal developments. A court has instructed Arbitrum DAO to move the frozen ETH to Aave LLC via onchain voting, with an injunction to follow once the transfer is completed. Aave LLC is awaiting the final ruling. As an interim step, the team has borrowed additional funds to cover any shortfall, aiming to prevent user impact from procedural delays. In the next phase, Aave will address rsETH overissuance. On Arbitrum, rsETH obtained through liquidations will be burned, while KelpDAO will burn the corresponding LayerZero crosschain message packets to fully eliminate the excess rsETH created during the attack. On Ethereum, seized rsETH will be moved to the bridge vault and paired with ETH pledged by the DeFi United alliance to fully collateralize the vault. Once backing is complete, the bridge will resume normal operations. Aave will then reopen rsETH withdrawals and revert protocol parameters that were temporarily adjusted for liquidations. Remaining affected positions will be closed using raised funds in ETH. Aave added that the WETH LTV on Aave V3 Ethereum Core will be restored to its normal level soon. A compensation inquiry tool is now live, allowing users impacted by the rsETH incident to check their estimated compensation amounts.