[DefiLlama Founder: Aave Faces Three Bad Debt Resolution Options] According to a post by DefiLlama founder 0xngmi, after KelpDAO was hacked, Aave is under pressure to handle bad debts and faces three potential solutions: 1. Socializing the losses, with users taking an 18.5% haircut. This is expected to result in approximately $216 million in bad debt, with umbrella insurance covering $55 million, the treasury filling $85 million, and a remaining gap of $76 million. 2. Executing a 'rug pull' on rsETH holders on L2, which would result in approximately $341 million in bad debt. 3. Returning assets based on a pre-attack snapshot, which, after umbrella insurance coverage, would still leave about $91 million in losses. Additionally, it is suggested to confiscate the hacker's collateral to offset part of the bad debt. Aave's OG safety module holds approximately $300 million in AAVE tokens, which, if reduced by 20%, could provide around $60 million in coverage.