I highly agree. What turns into simply supporting the platform in pure play turns into a humongous backslap because of faulty networks, that you’re not in, and mismanagement.
Despite KelpDAO swiftly blaming LayerZero for the disaster of the DRPK event involving Aave, the primary blame should in fact be with KelpDAO.
If a token becomes partially unbacked, wrongfully minted, or improperly validated, every downstream system inherits that risk.
Kelp controlled:
• minting rules
• collateral backing
• reserve accounting
• redemption guarantees
If the rsETH supply became unbacked or exploitable, that is the root failure
That places the majority of technical responsibility here
The entity closest to the root failure is the one most likely to absorb the largest share of losses.
And the fact that KelpDAO quickly make a press release blame LayerZero, because they don’t want to pay for their blunder, is disgraceful to the crypto community 
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is the repay functionality available? or is blocked?
You should be able to repay stablecoin debt (I don’t know about ETH debt tho). The issue most borrowers have is that they have no liquidity outside their position and they cant withdraw their stables to repay the debt due to 100% stable pools utilization. If you are in this situation your only escape is to repay the debt with outside liquidity, unlock the WETH as collateral (toggle off collateral) and only then you will be able to swap your aWETH bills to WETH/ETH without getting liquidated on Aave. Same thing for aUSDC token bills that can’t be withdrawn. You can swap the aUSDC bills to USDC (after debt repayment) on secondary markets for fair value. The stablecoins repayment should work 100%, Aave wants liquidity to reenter their pools and debt to disappear without more TVL getting out.
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LE: For users with debt against their ETH still stuck in the pool.
This works only for Mainnet!
Fluid has launched an aWETH Redemption Protocol together with Lido, Ether.fi, 1inch, 0x and Kyber. It has already processed $136M out of Aave’s frozen WETH pool in 48 hours and offers a second legitimate exit path, particularly useful for people who still have debt positions they cannot unwind.
How it works
For pure lenders: deposit your aWETH into Fluid’s Lite ETH Vault and receive wstETH or weETH in return. You can then withdraw normally.
For borrowers with stuck positions: your ETH collateral switches to wstETH or weETH. Your debt remains unchanged but your position becomes moveable again and you can exit.
The mechanic works because Fluid is the single largest borrower in Aave’s WETH market with approximately $1.5 billion in ETH debt. When you hand aWETH into their vault, Fluid uses it to repay part of its own Aave debt, no WETH needs to leave the pool. Your exit is funded by netting against Fluid’s existing liability.
You will receive wstETH or weETH instead of plain ETH, so there is a small conversion step involved. Expect a modest haircut compared to fair ETH value depending on market conditions at the time.
So you now have two legitimate exit paths. The CowSwap limit order method I described above works best for pure lenders with small to medium positions who want ETH or USDC directly. The Fluid redemption protocol works for both lenders and borrowers and has the capacity to handle much larger positions. Both use MEV protection by design. Choose based on your situation.
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It’s done I did it with insta swap instead for a fee of 1.8%. Thank you for the help.
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I’m glad it worked, tho you took and extra risk with the instant swap, a bot could’ve front run you, but the MEV protected you. Good you are out.
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Guys, Any updates on what happens to WETH And other supplied assets on Aave V3 on Arb?
I have assets to pay back my loan with it and then some but since they are all unwithdrawable, I can’t do it…
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You can use the uniswap aArbWETH <> ETH pool to swap your deposit tokens for the underlying at market price (i.e. a discount). If you are unable to do so due to debt drawn against the collateral, you should be able to use the aArbWETH <> aArbwstETH pool to swap the collateral tokens directly. Just make sure to enable collateral for wstETH on Aave!
As with any DEX swap, make sure to carefully check slippage limits and liquidity conditions to make sure you are receiving a price you deem fair for your input tokens. Please note some ill-willed users deployed Uniswap V4 pools with exploitative fee structures – make sure you’re using a V3 pool that gives you a fair output.
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Aave has frozen all my ETH without providing any timeline, and it’s been almost a month now. I will use legal means to address this issue. In my opinion, this is fraud.
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You gotta be more patient than this.
You mean patient like for AAVE on harmony? Years we are waiting for something. Shame on AAVE to ignoring those users.
Yes. Hats off to the Harmony holders
As much as I love binding arbitration, Aave has more than enough ETH from the DeFi United funding to make its users whole. At the time of post, they’re sitting on 137,716.667 ETH.
Regardless of the 30,766 ETH being locked by Arbitrum’s DAO, even if Arbitrum doesn’t come through, DeFi United would be sitting on 106,950 ETH
I know the exploited amount was 116,500 rsETH, so that leaves 9,550 ETH to account for
But there’s still commitments from Circle Ventures, Ethena, Ink Foundation, and Frax that would easily cover that gap, and potentially more.
So what’s the hold up and why are we playing the waiting game for the court’s verdict?
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The Defi United fund is just marketing and advertising for its partners; no real action has been taken yet, and in my opinion, there may not be any in the foreseeable future—there’s no point in dragging this out.
I don’t believe that to be realistic. Stani has been fairly transparent and forthcoming about this situation.
If that were true, Aave’s business would be deeply affected relatively fast.
Good News Hacker Liquidated
I also don’t know why they did not post it. But the hacker position has been liquidated by the payload in AIP-478 and here is the recovered funds on Eth-Main-Net and on Arbitum-L2
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More than enough
We have more than enough now to cover everything. The extra fund should definitely go into a vote for bridge securities.
AAVE should have a wormhole kind of security and should definitely have a bigger say on all the bridges.
Draw up a bridge compliance plan and make sure everyone flows the plan else do not list the token as collateral.
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Just make sure to enable collateral for wstETH on Aave!-Tell me how to do it.-
Aave has frozen all my ETH without providing any timeline, and it’s been almost a month now.
One way to truly unite is to give everyone a duly deserved answer, starting with the timeline.