Mantle discusses providing Aave DAO with a loan of up to 30k ETH to cover bad debt from rsETH event

Wu said that MantleCore submitted a draft proposal for MIP-34, planning to authorize Mantle Treasury to provide up to 30k ETH in loans to Aave DAO, specifically to address the bad debt impact caused by the rsETH bridge vulnerability incident on April 18, 2026; the draft shows that the loan term can be up to 36 months, with an interest rate of LIDO+1% annualized or as ultimately negotiated by the execution team, allowing for early repayment without penalty. Disclosure states that Kelp DAO’s rsETH bridge was attacked on April 18, with the attacker exploiting a LayerZero bridge configuration vulnerability, unauthorizedly minting 116.5k rsETH worth approximately $292 million, and lending out about $190 million worth of assets using 89,567 rsETH as collateral on Aave V3; LlamaRisk’s report estimates the potential bad debt scale on Aave to be between $123.7 million and $230.1 million. The draft also proposes that Aave will add collateral including 5% of protocol revenue and Aave tokens with a fair market value of no less than $11 million, and Mantle will be entrusted with 130k Aave tokens to participate in governance. The proposal is currently under discussion and has not yet initiated formal voting.