Aave has reinstated wETH loan capabilities across six networks following recovery from an exploit, enhancing liquidity and user access.
Aave has reestablished collateral functionality for wrapped Ether (wETH) across six networks following significant recovery efforts after the April Kelp hack.
The protocol has successfully restored the loan-to-value (LTV) ratios for wETH to their prior levels, allowing users to borrow against their wETH once more, including the ability to execute collateral and debt swaps. This development marks a crucial milestone in Aave's recovery strategy.
After the exploit of a vulnerability in the rsETH bridge, which resulted in attacks valued at $292 million, Aave had temporarily set the LTV for wETH to zero as a precautionary measure. This action effectively barred users from utilizing wETH as collateral.
The LTV ratios have now been readjusted as follows:
- Ethereum Core — 80.5%;
- Ethereum Prime — 84%;
- Arbitrum, Base, and Linea — 80%;
- Mantle — 80.5%.
In total, approximately 107,000 of the 112,103 rsETH tokens generated during the attack have been retrieved through liquidations in Aave and Compound, with the remaining 5,200 rsETH anticipated to be covered by the collaborative efforts of DeFi United.
Aave co-founder Stani Kulechov noted that this update represents a significant advancement in technical recovery efforts, providing enhanced liquidity and enabling users to pursue leveraged strategies in decentralized finance once again.
