Aave Advances rsETH Remediation, Set to Recover $71M in ETH

Aave said on X that it has made progress on phase two of its technical remediation tied to the rsETH incident. On May 6, eight positions on Aave V3 were liquidated, and the recovered rsETH collateral was transferred to the recovery custodian. Arbitrum DAO has approved a proposal to return $71 million in ETH that had been recovered previously. A judge also signed off on Aave LLC's proposed response to the plaintiff's asset-freeze request, allowing the $71 million in ETH to be transferred to Aave LLC following an Arbitrum DAO onchain vote. Next steps include burning rsETH on Arbitrum and replenishing the rsETH reserve. After the reserve is restored, withdrawals will reopen and the WETH LTV on Aave V3's Ethereum mainnet will be reinstated.