Mantle proposes up to 30,000 ETH loan to address Aave bad debt from Kelp exploit
Mantle Network proposed lending up to 30,000 ETH to Aave DAO to address $292 million bad debt from the Kelp DAO exploit. The loan, yielding Lido staking APR plus 1%, would be secured with collateral and repaid within 36 months. DeFi players including EtherFi and Lido are contributing to relief efforts, demonstrating industry-wide support for protocol recovery.
Key takeaways
- 1Mantle proposes lending up to 30,000 ETH to Aave DAO at Lido staking APR plus 1% over 36 months to address $292 million bad debt from Kelp exploit.
- 2Loan secured by multisig wallet with first-priority lien; Aave must pledge 5% revenue and $11 million in Aave tokens as collateral.
- 3Industry players including EtherFi, Lido, and Golem Foundation collectively pledging over 8,500 ETH through DeFi United relief initiative for protocol recovery.
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Why it matters
This rescue coordinated by major DeFi platforms demonstrates institutional support for ecosystem stability and reduces systemic risk from the exploit affecting Indian investors holding exposure to Aave or staking protocols. The precedent signals stronger governance mechanisms for future DeFi incidents affecting Indian retail participation in yield farming.
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