Mantle Token Holders Approve Proposal to Authorize a Credit Line of Up to 30,000 ETH to Aave

Foresight News reports, according to the Snapshot page, Mantle token holders have completed voting on the MIP-34 proposal, passing it with 110.1 million MNT (100%) in favor. The proposal authorizes the Mantle treasury to provide Aave DAO with a credit line of up to 30,000 ETH (approximately $68 million) to address bad debt issues caused by the rsETH cross-chain vulnerability on April 18. The loan interest rate will be Lido staking yield plus 1%, with a maximum term of 36 months and the option for early repayment. Previously, attackers exploited a LayerZero bridge configuration vulnerability in Kelp DAO to mint 116,500 rsETH without authorization. Subsequently, 89,567 of these tokens were deposited as collateral into Aave V3, borrowing approximately $190 million in assets, resulting in an estimated potential bad debt of $123.7 million to $230.1 million. As a risk mitigation measure, Aave will additionally provide no less than $11 million worth of AAVE tokens as collateral and delegate governance voting rights for 130,000 AAVE tokens to Mantle.