Aave states that the attacker’s Aave V3 (version 3 lending market) positions were liquidated on May 6, while the Arbitrum DAO (decentralized autonomous organization) voted to return $71 million in recovered ETH to the protocol.
Aave said Phase II of its rsETH recovery plan is now underway after the attacker’s positions on Aave V3 (version 3 lending market) were liquidated on May 6. The protocol also said the Arbitrum DAO (decentralized autonomous organization) voted to return $71 million in recovered ETH to Aave. The update indicates progress in the protocol’s effort to recover funds tied to the rsETH incident and close out the attacker’s onchain borrowing positions, which is a standard step in decentralized finance after collateral becomes insufficient or is forcibly unwound.