Aave discloses bad debt data: Depending on different rsETH accounting methods, there could be two bad debt scenarios of $123.7 million and $230.1 million.

Odaily reports that Aave has commented on the bad debt arising from the rsETH theft incident, stating that based on different handling scenarios for rsETH, there could be two possible kinds of bad debt.

If the stolen losses are deducted proportionally from all rsETH in circulation, it is expected that $123.7 million of bad debt will be created, with most of the absolute amount concentrated on the Ethereum mainnet, while Mantle is hit hardest in terms of proportion.

If the value of mainnet rsETH is protected and all the losses are assigned to the mapped rsETH versions on Layer2, it is expected to result in $230.1 million of bad debt, all on the Layer2 networks. Mantle would face a 71.45% WETH shortfall, while Arbitrum would face a 26.67% shortfall; the Ethereum mainnet would not be affected.

Aave further noted that the eventual outcome depends on decisions beyond Aave's control, primarily the accounting method for rsETH and the way LRTOracle updates exchange rates.