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TechFlow News: On April 21, 0xngmi, founder of DeFiLlama, posted on X stating that, after reviewing the data, if Arbitrum prioritizes seized funds for the Aave market on Arbitrum under the “loss socialization” scenario, Arbitrum would incur no bad debt. If rsETH on the L2 faces a total loss (zero-value) risk, bad debt on Arbitrum’s Aave would decrease by approximately 80%—from $88 million to $17 million.
0xngmi, founder of DeFiLlama, posted on X stating that after reviewing the data, if Arbitrum prioritizes seized funds for the Aave market on Arbitrum, there would be no bad debt on Arbitrum under a “loss socialization” scenario. If rsETH on the L2 faces a total loss (zero-value risk), bad debt on Aave on Arbitrum could be reduced by approximately 80%, from $88 million to $17 million.
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