Aave: The rsETH market on V3 and V4 has been frozen, and potential bad debts are being assessed.

CoinFeed reported on April 19th that Aave issued a statement regarding the KelpDAO attack, stating that the rsETH market on Aave V3 and V4 has been frozen, and the asset currently has no lending capabilities. Neither Aave V3 nor V4 holds rsETH. Aave's contracts were not attacked; the attack was related to rsETH. The freeze was caused by a Kelp DAO rsETH bridging vulnerability. The rsETH market was frozen to prevent new rsETH deposits and collateralized lending while the situation is assessed. The team is reviewing rsETH lending information that occurred on Aave after the vulnerability attack and will share more details as soon as possible. If the protocol has accumulated bad debts due to this incident, the team will explore ways to mitigate the losses.