DefiLlama founder: Aave faces three bad debt resolution options
Show original
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold. Trade now!
A welcome pack worth 6200 USDT for new users! Sign up now!
According to a post by DefiLlama founder 0xngmi, following the KelpDAO hack, Aave is facing pressure to handle bad debt, with three possible solutions: First, socializing the losses among users by reducing asset value by 18.5%, which is expected to result in approximately $216 million in bad debt. Umbrella insurance would cover $55 million, and the treasury would supplement $85 million, still leaving a $76 million gap. Second, executing a "rug pull" for rsETH holders on L2, which would generate around $341 million in bad debt. Third, returning assets based on a pre-attack snapshot, which, after umbrella insurance coverage, would still leave about $91 million in losses. Additionally, it is suggested to confiscate the hacker's collateral to offset part of the bad debt. Aave OG Security Module holds around $300 million AAVE tokens, and a 20% haircut could provide about $60 million in coverage.
0
0
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
Understand the market, then trade.
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.
Trade now!
You may also like
Foreign media: DOGE holds the $0.068 support level
币界网•2026/08/15 16:41

TAESA announces extraordinary shareholder meeting
Reuters•2026/08/15 16:37

Crypto prices
MoreBitcoin
BTC
$63,026.47
-0.04%
Ethereum
ETH
$1,882.6
-0.01%
Tether USDt
USDT
$0.9989
-0.00%
USDC
USDC
$0.9999
+0.00%
XRP
XRP
$1
-0.01%
Solana
SOL
$75.41
+0.00%
TRON
TRX
$0.3318
-0.05%
Hyperliquid
HYPE
$56.92
+1.87%
Dogecoin
DOGE
$0.06994
+0.13%
Zcash
ZEC
$490.99
+0.51%
How to buy BTC
Bitget lists BTC – Buy or sell BTC quickly on Bitget!
Trade now
Become a trader now?A welcome pack worth 6200 USDT for new users!
Sign up now