Aave Restores WETH Collateral Ratios to 80%+ Across Six Networks After April rsETH Exploit

Following the April rsETH exploit that drained approximately $230 million in ETH from the lending protocol, Aave has restored normal loan-to-value ratios for wrapped ether (WETH) across six V3 networks. According to Aave governance documentation, WETH LTVs have returned to 80.5% on Ethereum Core, 84% on Ethereum Prime, 80% on Arbitrum, 80% on Base, 80.5% on Mantle, and 80% on Linea. During the crisis, Aave had cut WETH’s LTV to 0% to prevent further collateral damage after attackers exploited a LayerZero bridge misconfiguration in Kelp DAO’s rsETH, minting approximately $292 million in unbacked tokens used to drain real liquidity from the platform. With over 95% of the unbacked rsETH recovered through liquidations and coordination with other DeFi protocols, Aave determined the immediate systemic risk had been contained.