The aftershock of rsETH ultimately affected the entire Defi track. Aave provided two options for bad debts: 1. The entire network's rsETH will share the losses uniformly, with each rsETH losing approximately 15.12%. 2. L2 rsETH will bear the losses, and rsETH on L2 will face a discount of up to 73.54%. Aave's total bad debt is approximately 230.1 million US dollars. There are two responsible parties here, one is the underlying provider, LayerZero's OFT (All Chain Homogenization Token) standard, which provides unified supply and equal redemption. The other is Kelp, choosing the second option means legal action, while choosing the first option means offending all project participants. Two options are equivalent to AAVE assigning bad debt responsibility to Kelp and LayerZero. In addition, over 80% of Aave's Umbrella stakers have started to release their pledges, with approximately 18922 aWETH. This means that AAVE's protocol security cushion has lost trust in the short term. After the announcement, BitGo suspended the Layer Zero DVN verification of WBTC, and head protocols such as Curve Finance and Ethena suspended or downgraded paths related to Layer Zero OFT. The representative of L2, the Arbitrarum Security Committee, used emergency privileges (passed by 9/12 vote) to freeze 30766 ETH transferred by hackers into intermediate wallets, completely exposing the centralized power of the L2 Security Committee. After Arbitrum froze a portion of the funds, hackers quickly transferred the remaining 75701 ETH to the Ethereum mainnet and began cross chain mixing with the Bitcoin network through paths such as Thorchain and Umbra Cash. So far, the price of ETH has not fluctuated up or down, which is fortunate for AAVE. The utilization rate of Aave collateral has reached 100%, and if Ethereum prices plummet due to hacker selling, bad debts will continue to inflate: It is estimated that if ETH falls by 30%, more than $250 million in assets will be liquidated, and if it falls by more than 50%, $1 billion in assets will face liquidation. In addition, the current aave clearing channel is severely congested. Once the clearing chain starts running, it may be the second epic black swan on the chain since Luna Thunderstorm.