Mantle token holders have approved granting Aave a 30,000 ETH credit line to assist AAVE in addressing the rsETH exploit event

On May 8, Mantle token holders approved a credit line of up to 30,000 ETH (roughly $68 million) for Aave DAO via Proposal MIP-34. The move aims to address potential defaults stemming from the April rsETH exploit on Aave V3, with estimated default amounts ranging from $123.7 million to $230.1 million. The proposal passed a seven-day Snapshot vote, authorizing the Mantle Foundation to negotiate with Aave DAO and execute the final loan agreement. Implementation of the credit line remains contingent on Aave executing its recovery plan and finalizing specific terms. A Galaxy Research report noted the rsETH exploit left Aave’s WETH market in prolonged tension, with fund utilization rates above 99% for 12.7 consecutive days. As of May 8, utilization in Aave’s Ethereum V3 WETH market has dropped to around 91.6%, easing market pressure.