AAVE has announced a comprehensive plan to restore the collateral support for rsETH, aiming to stabilize the market through a three-phase approach. The initiative involves supplementing ETH collateral, clearing affected positions, and restoring market parameters to ensure full collateralization of rsETH.
DeFi United has secured commitments for the necessary ETH, which will be converted and injected into the bridged escrow contract to back rsETH. A governance proposal is also in the works to clear affected positions on Aave and Compound, targeting the recovery of approximately 107,000 rsETH-related overcollateralization assets and gradually unfreezing these assets.
AAVE Unveils rsETH Recovery Plan to Reinstate Collateral Support
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