Aave will comprehensively reform its collateral system and adjust its asset listing standards to address the risks posed by the KelpDAO vulnerability.

CoinFeed reported on May 7th that, according to CoinDesk, Aave Labs will rewrite its asset listing and collateral risk control rules. In addition to existing price and volatility assessments, it will add reviews of interoperability, cybersecurity, and underlying architecture, and release minimum standard guidelines for asset issuers. This move stems from the April attack on the KelpDAO cross-chain bridge, in which hackers minted approximately $293 million worth of unbacked rsETH and used it as collateral to borrow real wETH on Aave, causing hundreds of millions of dollars in bad debt for the protocol. Aave will also shift its focus from a single-pool perspective to studying the systemic connections between different DeFi protocols to reduce cross-protocol risks and calls on other DeFi projects to follow similar standards.