{"id":97807,"date":"2026-06-01T17:45:18","date_gmt":"2026-06-01T14:45:18","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=97807"},"modified":"2026-06-01T17:50:14","modified_gmt":"2026-06-01T14:50:14","slug":"aave-tightens-listing-standards-following-293-million-rseth-incident","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/aave-tightens-listing-standards-following-293-million-rseth-incident\/","title":{"rendered":"Aave Tightens Listing Standards Following $293 Million rsETH Incident"},"content":{"rendered":"<p>The <a href=\"https:\/\/forklog.com\/en\/news\/what-is-aave\">Aave<\/a> protocol has revised its asset listing standards following the <a href=\"https:\/\/forklog.com\/en\/news\/kelp-protocol-loses-293-million-following-cross-chain-bridge-attack\">April incident<\/a> involving rsETH, which threatened the project with a potential bad debt of hundreds of millions of dollars.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"zxx\" dir=\"ltr\"><a href=\"https:\/\/t.co\/ixfuSrVKA8\">https:\/\/t.co\/ixfuSrVKA8<\/a><\/p>\n<p>\u2014 Aave (@aave) <a href=\"https:\/\/x.com\/aave\/status\/2060901386611499378?ref_src=twsrc%5Etfw\">May 31, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.x.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The incident was caused by a verification failure in the LayerZero bridge used by the Kelp project, rather than a vulnerability in the lending platform&#8217;s smart contracts. An attacker exploited a configuration error in one of the verifiers to forge a <a href=\"https:\/\/forklog.com\/en\/news\/what-are-cross-chain-bridges\">cross-chain<\/a> message and issue 116,500 unsecured rsETH tokens ($293 million).<\/p>\n<p>The assets were deposited into Aave as collateral. Since rsETH was in eMode with a high <span data-descr=\"Loan-to-Value, ratio of loan to collateral\" class=\"old_tooltip\">LTV<\/span> (93%), the attacker borrowed liquid assets that the protocol would not be able to recover after rsETH devaluation.<\/p>\n<p>The new framework for versions V3, V4, and Horizon expands risk assessment criteria. In addition to volatility and liquidity, Aave will now consider:<\/p>\n<ul class=\"wp-block-list\">\n<li>the reliability of bridge infrastructure and the number of token wrapping layers;<\/li>\n<li>dependencies on external oracles and custodians;<\/li>\n<li>technical architecture (compliance with <a href=\"https:\/\/forklog.com\/en\/news\/what-are-erc-20-tokens\">ERC-20<\/a>, admin rights, and code upgradeability);<\/li>\n<li>operational security of the asset issuer.<\/li>\n<\/ul>\n<p>The team also proposed implementing automated protective mechanisms. These would allow the LTV of an asset to be instantly reset upon reaching critical risk thresholds, without waiting for governance decisions.<\/p>\n<p>Risk managers have already made around 295 adjustments to the parameters of V3 markets, including reducing supply and borrowing limits to minimize the impact of similar incidents.\u00a0<\/p>\n<p>Auditors from OpenZeppelin <a href=\"https:\/\/www.openzeppelin.com\/news\/lessons-from-kelpdao-hack\">confirmed<\/a> that the incident resulted from miscalculations in infrastructure configuration and risk management, rather than bugs in Aave or Kelp&#8217;s code.<\/p>\n<p>On May 25, Kelp <a href=\"https:\/\/forklog.com\/en\/news\/kelp-restores-full-collateral-for-rseth-token\">restored<\/a> rsETH collateral, with the team sending a final tranche of 20,373 rsETH to the LayerZero smart contract.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Aave revised its asset listing standards following the April incident with rsETH, which threatened the project with potential bad debt of hundreds of millions of dollars.<\/p>\n","protected":false},"author":1,"featured_media":97808,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Aave revised listing standards after rsETH incident threatening $293M debt.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1212,1111,1286],"class_list":["post-97807","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-aave","tag-cybersecurity","tag-listing"],"aioseo_notices":[],"amp_enabled":true,"views":"4","promo_type":"1","layout_type":"1","short_excerpt":"Aave revised listing standards after rsETH incident threatening $293M debt.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/97807","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=97807"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/97807\/revisions"}],"predecessor-version":[{"id":97809,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/97807\/revisions\/97809"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/97808"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=97807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=97807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=97807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}