Mantle token holders have approved a proposal to authorize a credit line of up to 30,000 ETH (approximately $68 million) for the Aave DAO. This decision, made through Proposal MIP-34, aims to address potential bad debt in Aave V3 following the April rsETH attack, which caused estimated losses between $123.7 million and $230.1 million. The approval came after a seven-day Snapshot vote, allowing the Mantle Foundation to negotiate and finalize a loan agreement with Aave.
The credit line's finalization is contingent upon Aave implementing its recovery plan and agreeing on specific terms. The rsETH attack had previously stressed Aave's WETH market, with utilization rates exceeding 99% for over 12 days. As of May 8, the utilization rate has decreased to approximately 91.6%, indicating a reduction in market pressure.
Mantle Token Holders Approve 30,000 ETH Credit Line for Aave
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