According to Wu Blockchain, LlamaRisk (Aave DAO's risk service provider) has released the *rsETH Incident Report*, quantifying the potential bad debt impact of the rsETH incident on Aave and proposing two main scenarios: 1. Losses are evenly distributed among all rsETH holders, with an approximate 15.12% haircut, corresponding to about $123.7M in bad debt. 2. Losses are concentrated on L2 rsETH, requiring an approximate 73.54% haircut, corresponding to about $230.1M in bad debt, primarily borne by chains like Mantle, Arbitrum, and Base. The report also highlights that the current utilization rate of multi-chain WETH reserves has reached 100%, with idle balances below $20, limiting liquidation liquidity and potentially amplifying risk transmission. As a response, it recommends immediately pausing the WETH Umbrella module to preserve coverage capacity and suggests that the Aave DAO treasury and ecosystem participants collaborate to address potential bad debt. The final impact will still depend on Kelp's loss allocation and fund recovery progress. https://(wublock123.com)/news/llamarisk-rseth-impact-aave-potential-loss-230m-59844