🚨 BREAKING: AAVE @aave governance post details the amount of bad debt it has under 2 scenarios: Scenario 1 (uniform socialization of rsETH) produces $123.7M in bad debt, concentrated on Ethereum Core (Aave deployment on Eth mainnet) in absolute size terms and most acute on Mantle in proportional terms. Scenario 2 (losses isolated to L2 rsETH) estimates $230.1M in bad debt, all on L2s. Mantle faces a 71.45% WETH shortfall and Arbitrum 26.67%; Ethereum Core is unaffected. "As of April 20, 2026, the DAO treasury holds $181 million in assets," the report said. "Which scenario materializes depends on decisions outside Aave's control, primarily how rsETH accounting and the LRTOracle exchange rate are updated," Aave said. https://governance.aave.com/t/rseth-incident-report-april-20-2026/24580(The Defiant)