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

BlockBeats News, May 8th, Mantle token holders have approved a credit line of up to 30,000 ETH (approximately $68 million) to the Aave DAO through the MIP-34 proposal. This move aims to help address the potential default issue caused by the April rsETH exploit incident in Aave V3, with the estimated default ranging between $123.7 million and $230.1 million.

The proposal passed during a seven-day Snapshot vote, authorizing the Mantle Foundation to negotiate with the Aave DAO and execute the final loan agreement. The implementation of this credit line is still contingent on Aave carrying out its recovery plan and finalizing the specific terms.

A report from Galaxy Research pointed out that the rsETH exploit incident had put Aave's WETH market in a prolonged state of tension, with the fund utilization rate staying above 99% for 12.7 consecutive days. As of May 8th, the WETH market utilization rate in Aave's Ethereum V3 has dropped to around 91.6%, easing the market pressure.