TechFlow reports that on April 27, according to the Aave Governance Forum, service provider TokenLogic published an ARFC proposal on April 27, 2026, officially disclosing and confirming the suspension of AAVE buybacks effective April 19.
The suspension stems from a vulnerability exploit targeting Kelp’s LayerZero rsETH bridge route on April 18, which caused under-collateralized rsETH to flow into the Aave V3 multi-chain market. In response, Aave Protocol Guardians and risk management teams immediately froze all rsETH and wrsETH reserves and adjusted the WETH interest rates for related deployments.
Given significant uncertainties surrounding loss allocation, asset recovery, and DAO-level response measures, the DAO has decided to pause buyback operations to preserve financial flexibility and avoid depleting treasury reserves during this sensitive period. The proposal explicitly states that the buyback schedule will be reassessed once the situation becomes clearer, and any resumption plan will be communicated to the community via standard treasury update announcements.
