rsETH Crisis Comes to a Grand Conclusion? Aave Leads “DeFi United” to Fill the Gap with Only 7% Remaining!

The recent heated rsETH bad debt incident is finally coming to an end. As the lending platform directly impacted by this storm, Aave has demonstrated the responsibility of a veteran DeFi giant, choosing not to shift blame but to act decisively to stabilize the situation.
Faced with a massive bad debt gap totaling 75,081 ETH, Aave directly used its own funds, taking out 25k ETH (approximately $57.75 million) to initially cover the bad debt. This move not only quickly calmed market panic but also set the tone for industry self-rescue efforts moving forward.
Of course, it’s unrealistic for Aave alone to bear the burden. To systematically resolve the crisis, Aave led the coordination to establish the “DeFi United” aid program, calling on relevant parties within the ecosystem to share the risks. Based on current results, this initiative has received an unexpectedly strong response!
Latest data shows that the “DeFi United” plan has already secured aid commitments of 69,576 ETH (including loans and direct donations). This means that up to 92.6% of the gap has been successfully filled! Only 5,505 ETH remain to fully cover the bad debt.
Is there still suspense about this final 5% gap? Most likely, it’s already under control. Reports indicate that several related parties, such as LayerZero, have explicitly expressed their willingness to help, though the specific amounts are still being finalized or evaluated. Given the current progress of the funding pool, once these funds are deployed, they will not only fully fill the remaining gap but may even leave some safety margin.
Looking back at the entire event, from the storm’s arrival to its near-resolution, it has exposed the fragility of re-staked assets under extreme market conditions. However, the crisis response process has demonstrated the maturity of DeFi. Aave’s decisive backing and the collective effort of “DeFi United” prove that decentralized finance is not a disorganized chaos at critical moments but still possesses strong self-healing capabilities and coordination efficiency.
For Aave users, having bad debt fully covered is undoubtedly the best outcome. But this alarm bell still rings loudly: in the DeFi Lego world, the liquidity risk of underlying assets is always a sword hanging overhead. It is hoped that this incident will drive the entire industry to a historic upgrade in risk parameter settings. 🛡️🦄$AAVE