Aave Restores WETH Loan-to-Value Ratios After rsETH Recovery Plan Update

Aave Restores WETH Loan-to-Value Ratios After rsETH Recovery Plan Update

According to Aave, Stani Kulechov, and Kelp, WETH borrowing has resumed across affected markets as coordinated liquidations recovered 17,426.20 rsETH following fallout from Kelp DAO’s April exploit.

ETH
ARB
MNT

Fact Check
The core claim is well-supported: Aave did restore WETH loan-to-value ratios following the Kelp DAO rsETH exploit recovery, as confirmed by Stani Kulechov's own X post, the crypto.news article, and the panewslab report. The 17,426.20 rsETH figure is confirmed by financefeeds.com and other sources, but those sources attribute it specifically to Compound liquidations rather than Aave's own liquidations — the claim's phrasing 'coordinated liquidations recovered 17,426.20 rsETH' is ambiguous but not outright false, as it was part of the broader coordinated recovery effort. The claim correctly names Aave, Stani Kulechov, and Kelp as involved parties, and correctly describes the April exploit timeframe. The slight imprecision is that Aave's own liquidations recovered ~89,567 rsETH while Compound recovered the 17,426 figure, and the claim does not distinguish between the two. Overall the claim is substantially accurate with minor attribution ambiguity.
Summary

Aave said it restored borrowing against Wrapped Ether across affected markets, returning WETH loan-to-value ratios to pre-incident levels as part of its rsETH recovery process linked to fallout from Kelp DAO’s April exploit. Founder Stani Kulechov said the relevant parameters were reinstated across Aave V3 Ethereum Core, Ethereum Prime, Arbitrum, Base, Mantle, and Linea. Separately, Kelp said coordinated liquidations recovered about 17,426.20 rsETH, with Compound contributing about 3,000 ETH over the past four weeks and Aave and Euler Finance helping liquidate the attacker’s positions.

Terms & Concepts
  • Loan-to-value ratio: A lending risk metric that determines how much users can borrow against posted collateral.
  • Wrapped Ether: A tokenized version of Ether used in ERC-20-compatible applications and DeFi protocols.
  • rsETH: A crypto token associated with Kelp’s restaking product, used within decentralized finance applications.