Aave Announces Phase Two of rsETH Hacker Incident Recovery Plan
Aave has announced the progress of the Phase Two technical recovery plan for the rsETH incident V3, achieving significant breakthroughs on Ethereum Core and Arbitrum.
On May 6, eight Aave V3 positions held by the hacker were successfully liquidated, and the recovered rsETH collateral has been transferred to the Recovery Guardian as per AIP; governance proposals from Mantle DAO and Arbitrum DAO have both been approved, with the latter agreeing to return $71 million in ETH for joint recovery.
Legal support has been obtained from the court, allowing Arbitrum DAO to transfer the frozen ETH to Aave LLC.
Source: Public Information
ABAB AI Insight
Aave's team quickly advanced to the second phase after announcing the first phase recovery plan on April 28, focusing on liquidating hacker positions, DAO governance proposals, and legal rulings simultaneously. This continues their professional recovery path following multiple hacker incidents since 2022, with KelpDAO's simultaneous destruction of cross-chain message packets being particularly crucial.
In terms of capital, Aave is raising funds through the DeFi United alliance and borrowing temporary funds to cover the gap, quickly implementing asset recovery and community compensation. Resources are shifting from emergency response to destroying excess rsETH, restoring bridge lockbox endorsements, and rolling back parameters, aiming to maximize user trust and maintain protocol TVL, avoiding long-term capital outflow.
Similar to how multiple DeFi protocols are recovering through DAO + legal + technical paths after hacker incidents in 2024, DeFi risk management is transitioning from single event responses to standardized cross-chain recovery mechanisms.
Essentially, this reflects regulatory changes: achieving a rapid return of pricing power from hacker attacks to protocol governance and community consensus through a combination of DAO governance, legal rulings, and technical destruction. The mechanism relies on transparent liquidation and compensation tools to rebuild user confidence, allowing capital to shift from panic withdrawal to long-term holding, reinforcing Aave's resilience as a blue-chip DeFi protocol.
ABAB News · Cognitive Law
True DeFi resilience is only tested from the moment the hacker strikes. Liquidating the hacker, destroying excess, and legal recovery must all be executed to turn losses into trust. When a protocol can quickly recover stolen funds, users are willing to invest more.