The Aave DAO community has proposed an ARFC to officially suspend the buyback of AAVE tokens. This decision follows a security incident on April 18 involving a vulnerability in Kelp's LayerZero rsETH bridge, which led to uncollateralized rsETH entering multiple Aave V3 markets. In response, the protocol has implemented risk control measures, including freezing affected assets. The proposal suggests halting the buyback to maintain financial flexibility until the distribution of losses and potential bad debts are clarified. The buyback has been paused since April 19, with resumption pending further evaluation.
Aave DAO Proposes Suspension of AAVE Token Buyback
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