Mantle Holders Back 30,000 ETH Credit Facility for Aave to Contain rsETH-Related Losses

Mantle token holders have approved Proposal MIP34, authorizing a credit line of up to 30,000 ETH (about $68 million) for the Aave DAO, BlockBeats reported on May 8. The facility is intended to help cover potential bad debt on Aave V3 tied to the April rsETH attack, with estimated losses ranging from $123.7 million to $230.1 million. The measure passed via a seven-day Snapshot vote, allowing the Mantle Foundation to negotiate and execute a final loan agreement with the Aave DAO. Completion remains conditional on Aave implementing its recovery plan and finalizing detailed terms. Galaxy Research said the incident kept Aave's WETH market under sustained strain, with utilization above 99% for 12.7 consecutive days. By May 8, utilization on Aave Ethereum V3's WETH market had fallen to roughly 91.6%, easing pressure.