Aave DAO Community Proposal to Officially Suspend AAVE Buybacks in Response to rsETH Bridge Security Incident

Foresight News reports, according to the Snapshot page, Aave DAO service provider TokenLogic has initiated an 'ARFC' proposal on the governance forum, suggesting the official suspension of AAVE token buybacks. This proposal aims to address the LayerZero rsETH bridge path attack incident involving Kelp on April 18, which resulted in unsecured rsETH entering Aave V3 markets across multiple chains. The proposal states that AAVE buyback operations have effectively been halted since April 19, and this proposal seeks to formalize the suspension. The primary purpose of suspending buybacks is to preserve the flexibility and liquidity of treasury funds until the loss allocation, bad debt situation, and recovery plan related to the rsETH incident are clarified. The resumption of the buyback program will depend on the subsequent developments of this incident and community evaluations. Previously, Aave had implemented defensive measures such as freezing rsETH reserves and adjusting interest rates.