Aave has restored wrapped Ether (WETH) borrowing functions across six blockchain networks, marking the latest step in its recovery from the April rsETH exploit. According to the protocol and founder Stani Kulechov, loan-to-value (LTV) ratios for WETH on Ethereum Core, Ethereum Prime, Arbitrum, Base, Mantle, and Linea have been reset to pre-incident levels.
Detailed LTV Figures by Network
Ethereum Core returned to an 80.5% LTV, while Ethereum Prime resumed at 84%. Arbitrum, Base, and Linea each climbed back to 80%, and Mantle restored its 80.5% ratio. Users can once again borrow against WETH collateral, including through collateral swaps and debt swaps. The protocol had temporarily slashed WETH LTV to 0% after the April exploit, during which attackers minted roughly $292 million in unbacked rsETH tokens and deposited them as collateral on Aave.
Exploit Fallout and Liquidation Progress
The vulnerability drained about $230 million in ETH from the lending protocol. Aave immediately froze rsETH and wrsETH reserves while capping WETH borrowing. According to recovery data, around 112,103 unbacked rsETH emerged from the exploit. Aave's own liquidations recovered about 89,567 rsETH, and Compound liquidated another 17,426 tokens. That leaves roughly 5,200 rsETH still unresolved, which is expected to be covered by an industry coalition called DeFi United.
Follow-up Actions in the Ecosystem
KelpDAO continues broader recovery efforts. The protocol has restored rsETH backing and reopened withdrawals using recovered Ether and donated tokens. KelpDAO also migrated rsETH to Chainlink's oracle platform after previously relying on LayerZero infrastructure. Despite the borrowing resumption, Aave's total value locked remains well below pre-exploit levels. DefiLlama data shows TVL dropped from $23.5 billion in March to roughly $14.8 billion this week. Entropy Advisors data lead Tom Wan noted that wrapped stETH and WETH deposits have continued to decline since the exploit, though ETH borrowing rates fell to about 1.9% and unused ETH liquidity increased across the protocol. KelpDAO also announced plans to sunset rsETH bridging on Optimism, HyperEVM, Unichain, Avalanche, and MegaETH after June 15.