Ah, the grand ballet of Aave’s rsETH recovery pirouettes into its second act, replete with liquidations, DAO theatrics, and a legal charade that would make even a Russian bureaucrat blush.
The saga of Aave’s rsETH recovery, my dear reader, marches onward with the solemnity of a funeral procession-only this time, the corpse is the attacker’s positions, liquidated with all the finesse of a Cossack’s saber. Attention, ever fickle, now turns to the restoration of rsETH’s backing and the reopening of markets on Ethereum and Arbitrum, as if the financial world were a poorly run provincial theater in need of a new set of curtains.
Aave’s Liquidations: A Farce in Eight Positions
In an X post dated May 9-a day as unremarkable as a Tuesday in a small Ukrainian village-Aave unveiled the latest chapter in its rsETH recovery odyssey. The attacker’s positions, scattered across Aave V3 on Ethereum Core and Arbitrum, were liquidated with the precision of a tax collector and the mercy of a winter frost. Eight positions, no less, were dispatched on May 6, their rsETH collateral spirited away to the Recovery Guardian, a figure as enigmatic as a Gogol protagonist.
Fear not, dear reader, for Aave assures us that regular users and Umbrella stakers were left unscathed, much like the lone cabbage in a peasant’s garden after a bear’s visit. The focus now shifts to restoring rsETH’s backing and returning the markets to their former glory, or at least to a state of respectable mediocrity.
The recovery effort, buoyed by the approval of Mantle DAO and Arbitrum DAO, gains momentum like a cart rolling downhill-unstoppable, yet somehow still precarious. Mantle DAO, with the enthusiasm of a village elder at a wedding, joined the DeFi United coalition, while Arbitrum DAO approved the return of $71 million in recovered ETH, a sum as impressive as it is bewildering.
Arbitrum’s Security Council, ever vigilant, had earlier frozen the ETH, a move as dramatic as a landlady discovering unpaid rent. These funds, we are told, will support impacted Aave users, though one wonders if they will arrive with the same punctuality as a Russian train.
The Legal Circus: A Courtroom Farce
Ah, but what is a financial recovery without a legal imbroglio? On May 1, plaintiffs holding judgments against North Korea-a plot twist as absurd as a nose disappearing mid-sentence-served a restraining notice on Arbitrum DAO, seeking to block access to the recovered ETH. Aave LLC, not one to shy away from drama, filed an emergency motion, and a hearing ensued on May 6, complete with filings, arguments, and enough paperwork to fell a forest.
The court, in a moment of temporary sanity, approved a proposal allowing an onchain Arbitrum DAO vote to transfer the immobilized ETH to Aave LLC. The restraining notice, like a stubborn tenant, will attach to Aave LLC instead. Legal proceedings continue, of course, for what is life without a little bureaucratic torment? Borrowed funds will cover shortfalls in the interim, a solution as temporary as a summer romance.
The recovery plan now targets the inflated rsETH supply, a monstrosity born of the exploit. On Arbitrum, liquidated rsETH will be burned, a ritual as satisfying as a well-timed sneeze. Kelp, ever diligent, will retire the related LayerZero packet on Ethereum, ensuring no further rsETH minting from this exploit. One can only hope it is as effective as a grandmother’s remedy for the common cold.
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2026-05-09 16:06