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Andre Cronje: Has withdrawn ETH from Aave to ensure liquidity.

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PANews
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4 hours ago
AI summarizes in 5 seconds.

PANews April 19 news, Flying Tulip founder Andre Cronje stated that the investigation into the L0/rsETH incident is still ongoing. Initial reports indicate that it may be due to private key leakage or configuration errors, leading to approximately 200 million dollars worth of rsETH being stolen. Subsequently, these rsETH were deposited into Aave for borrowing ETH (due to insufficient liquidity of rsETH). This position is technically backed by collateral; even without collateral, Aave's tokens and the security module itself are the first line of defense against bad debts. Aave has no way to reimburse users for losses, which may trigger a run on the bank. Considering Aave has 7 billion dollars in ETH, and the extracted ETH is only 100 million dollars, the risk exposure for PUT is 17 million dollars, so the above situation is essentially inconsequential. Nevertheless, its primary goal remains to ensure liquidity for PUT users. Therefore, all ETH in Aave has been withdrawn to its own wrapped contract, because Aave's available liquidity has fallen below its minimum threshold.

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