Analysis: If the frozen funds are prioritized for use in the Aave marketplace on Arbitrum, it can significantly alleviate bad debts on the network's Aave marketplace.

CoinFeed reported on April 21 that 0xngmi, founder of DeFiLlama, published an analysis on the X platform stating that if Arbitrum prioritizes using frozen funds for the Aave market on Arbitrum: under the loss-sharing scheme, Aave on Arbitrum will have no bad debts at all; under the scheme where rsETH is abandoned on L2, bad debts on Aave on Arbitrum will decrease from $88 million to $17 million, a reduction of 80%.