Mantle Approves $68M Credit Facility for Aave Following Exploit
- Mantle tokenholders authorized a credit facility of up to 30,000 Ether (ETH), valued at approximately $68 million, for Aave DAO.
- The proposal, known as MIP-34, received approval in a seven-day Snapshot vote that concluded on Friday.
- The credit facility aims to mitigate the impact of the April rsETH exploit, which resulted in potential bad debt between $123.7 million and $230.1 million.
- Following the exploit, Aave’s Wrapped Ether (WETH) market experienced utilization rates exceeding 99% for over 12 days.
- As of Friday, Aave’s WETH market utilization has decreased to about 91.6%, with approximately 2.02 million WETH supplied and 1.85 million WETH borrowed.
This credit facility is designed to support Aave as it implements its recovery plan following significant liquidity stress caused by the exploit incident. The Mantle Foundation will negotiate terms with Aave DAO to finalize this agreement.
The approval of the credit facility comes as a crucial step in addressing the estimated bad debt from the exploit, which could reach up to $230 million.(Source)
