Aave rsETH recovery progress: Six major networks’ WETH LTVs have been restarted, and users can borrow again

Aave founder Stani Kulechov confirmed on X on May 18 that the next step in the rsETH technical recovery plan has been completed, and the WETH loan-to-value (LTV) for all affected networks has been restored to the pre-incident levels. Users can now borrow again on the Aave platform using WETH as collateral, including via the collateral swap and debt swap functions.

Restored Features and Affected Network List

The specific functions restored:

· WETH collateral borrowing feature (re-enabled)

· Collateral Swap feature

· Debt Swap feature

The Aave V3 deployments where the WETH LTV has been restored to pre-incident levels:

· Aave V3 Ethereum Core (Ethereum mainnet core market)

· Aave V3 Ethereum Prime (Ethereum mainnet Prime market)

· Aave V3 Arbitrum

· Aave V3 Base

· Aave V3 Mantle

· Aave V3 Linea

Confirmed Compensation Arrangements for Affected Users

In the announcement, Stani Kulechov confirmed the following compensation arrangements:

Compensation completed: Position holders in the affected liquidity pools have received allocations (as part of the platform reliability compensation measures).

APR multiplier eligibility: Users whose deposits have matured for 6 months are eligible for a maximum 1.35x APR multiplier.

Background on the rsETH Recovery Plan

This WETH LTV restoration is part of the phased rsETH technical recovery plan jointly advanced by Aave and Kelp DAO. Previously completed steps include: destroying rsETH held by the attacker on Arbitrum; strengthening the security of LayerZero bridge configurations (BailSec has completed the audit); and restoring rsETH cross-chain bridging functionality. Kulechov’s announcement clearly states that this is the completion of the “next step,” indicating the recovery plan is still being carried forward, with further steps yet to be completed.

FAQ

What does the restoration of WETH LTV mean for regular Aave users?

LTV (loan-to-value ratio) determines the maximum proportion users can borrow when using an asset as collateral. This restoration means the maximum borrowing ratio for WETH as collateral has returned to normal levels before the incident. Users can therefore borrow using WETH again at normal ratios, and all previously restricted functions affected by the incident have now been fully reopened.

How should the 1.35x APR multiplier compensation be understood, and which users are eligible?

According to Kulechov’s statement, “users whose deposits have matured for 6 months” are eligible. Their annualized yield will be multiplied by a factor of up to 1.35, which corresponds to receiving up to an additional 35% of yield as compensation on top of the normal interest rate. Specific applicable conditions and calculation methods are subject to Aave’s official announcement.

Which stage is the rsETH recovery plan currently in, and what steps remain?

Based on Kulechov’s description, this WETH LTV restoration is the completion of the “next step,” and the plan is still in progress, with additional steps remaining. Previously confirmed completed steps include: attacker rsETH destruction, bridge security hardening (including the BailSec audit), and the restoration of rsETH cross-chain bridging. Aave has not yet published a complete timetable for the subsequent plan.