Aave DAO plans to suspend AAVE buybacks to prioritize addressing the rsETH cross-chain vulnerability.

CoinFeed reported on April 27 that the Aave DAO is considering a proposal titled "[ARFC] Suspension of AAVE Buybacks," which proposes to formally suspend AAVE token buybacks. The proposal states that due to an attack on Kelp's LayerZero rsETH cross-chain on April 18, uncollateralized rsETH flowed into the Aave V3 market on multiple chains. Aave has urgently frozen rsETH and wrsETH-related reserves and adjusted the WETH interest rate. As the current distribution of rsETH losses, asset recovery, and the potential scale of bad debts are still unclear, the proposal suggests suspending the use of protocol revenue for buybacks until the situation becomes clearer, in order to maintain a treasury to cope with possible coordinated disposal plans. The subsequent buyback schedule will be reassessed based on the development of the situation.