Aave raise $160M to cover $200M bad-debt for rsETH after KelpDAO/LayerZero hack

Arkham talk say Aave dey raise almost $160 million to cover most of about $200 million bad debt wey relate to the rsETH breach. The funding—around 55,000 ETH (including big contributions from Mantle and the Aave DAO)—na to restore liquidity for rsETH and remove exposure to damaged debt. Founder Stani Kulechov still back the rescue, dem say im contribute 5,000 ETH, show say inside people dey support the “DeFi United” stabilization plan. The exploit trace reach KelpDAO integration vulnerability with LayerZero: attacker allegedly mint 116,500 unbacked rsETH tokens. When the collateral become unusable on Aave, lenders quickly withdraw, and outflows reportedly pass $10 billion. Separate, the article flag another late-March issue: Solana’s Drift Protocol lose at least $270 million after attacker exploit “durable nonces”, show say smart-contract and integration risks still dey. Trading takeaway: progress on Aave’s rsETH bad-debt coverage fit reduce short-term systemic fear, but the big withdrawals (> $10B) mean volatility and risk-off sentiment fit still linger for DeFi lending names.