Ethena Joins Aave’s DeFi Relief Effort After rsETH-Related Incident

Aave suspended rsETH reserve operations across Ethereum and four Layer-2 networks, while Ethena states it is supporting affected parties in a coordinated recovery effort to maximize potential asset recovery.

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Summary

Aave suspended rsETH reserve operations across Ethereum Core, Arbitrum, Base, Mantle and Linea following an rsETH-related incident, saying the step is intended to preserve time and operational flexibility for a fund recovery plan and support the highest possible asset recovery during restoration. Ethena said it has been working with affected parties this week in a supporting role and is participating in Aave’s coordinated DeFi relief effort as part of a broader recovery initiative with other ecosystem participants. Neither topic provides details on the incident’s cause, losses, affected amounts, or the specific recovery measures being implemented.

Terms & Concepts
  • rsETH: A crypto asset referenced as the reserve asset involved in the incident and the asset whose reserve operations were suspended by Aave.
  • Aave: A decentralized lending protocol that lets users lend and borrow digital assets through smart contracts on a blockchain.
  • Layer-2 network: A blockchain scaling network built on top of another chain, intended to improve speed or reduce costs while relying on the base network.