The Mantle community intends to provide a loan of up to 30,000 ETH to the Aave DAO through MIP - 34 to address the bad debts from the rsETH incident

The Mantle community has authorized the Mantle Treasury to provide a loan of up to 30,000 ETH to the Aave DAO through proposal MIP - 34, to address the bad debt impact caused by the rsETH cross-chain bridge security incident on Aave V3.

According to the proposal, the loan term is up to 36 months, with an interest rate of LIDO + 1% annualized, and the borrower can repay early without penalty. In terms of risk control, Mantle will have priority security rights over the relevant collateral assets, and Aave will also provide additional collateral in the form of Aave tokens and protocol revenue worth no less than $11 million, and will delegate 130,000 Aave tokens to Mantle for governance participation.