DefiLlama founder: After Arbitrum seizes the hacker's funds, Aave's bad debt on this L2 will be reduced by at least 80%
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According to Odaily, DefiLlama founder 0xngmi posted on platform X stating that upon verifying the data, if Arbitrum gives priority to using the seized funds for the AAVE market on Arbitrum, under the scenario where all rsETH shares the impairment, Aave would have zero bad debt on Arbitrum. If only the mainnet rsETH value is guaranteed (ignoring the value of the Layer2 mapped rsETH), Aave’s bad debt on Arbitrum would be reduced by 80%, dropping from 88 million USD to 17 million USD.
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