TechFlow News: On April 20, according to a post by DefiLlama founder 0xngmi, following the hack of KelpDAO, Aave faces severe pressure in handling bad debt. Currently, three potential solutions are under consideration: (1) Socializing the loss across all users, which would result in an 18.5% impairment for users and approximately $216 million in bad debt; Aave’s Umbrella Insurance could cover $55 million, and the treasury could contribute another $85 million, leaving a shortfall of roughly $76 million. (2) Executing a “rug pull” on rsETH holders on Layer 2, generating approximately $341 million in bad debt, with Arbitrum, Mantle, and Base markets suffering the most severe losses. (3) Returning assets to holders based on a pre-attack snapshot—however, this approach is extremely operationally challenging, and even after coverage by Umbrella Insurance, an estimated $91 million in losses would remain. Additionally, some suggest seizing the hacker’s collateral to offset part of the bad debt. Furthermore, Aave’s OG Security Module still holds approximately $300 million worth of AAVE tokens; applying a 20% reduction would provide an additional ~$60 million in loss coverage.
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