MantleCore, the governance body of the Mantle ecosystem, has introduced draft MIP-34, proposing a strategic credit facility of up to 30,000 ETH from the Mantle Treasury to Aave DAO. The initiative aims to mitigate the aftermath of the recent KelpDAO rsETH exploit. Currently in the discussion phase, the proposal requires community input before advancing to a formal vote.
Background: The rsETH Exploit Aftermath
In May 2026, KelpDAO's rsETH token suffered a security exploit, jeopardizing substantial assets. In response, KelpDAO and Aave DAO jointly burned 17,132 rsETH and resumed withdrawals. Additionally, KelpDAO announced it would end rsETH cross-chain support on 20 networks by June 15. While KelpDAO later claimed a 100% backing ratio, exchange inflows of rsETH surged, indicating lingering market unease. Aave DAO, as a major integrator of rsETH, faced heightened liquidity pressure throughout the incident.
MantleCore's Credit Proposal
Under MIP-34, the Mantle Treasury would lend up to 30,000 ETH to Aave DAO to replenish funds drained by irregular rsETH redemptions. The loan will feature structured terms (interest rate, duration, collateral details still under discussion). MantleCore described the move as a “strategic cross-protocol credit support” aimed at preserving the stability of the DeFi ecosystem. If approved, this would be Mantle's largest external financial commitment to date and mark the first large-scale direct credit cooperation between a Layer 2 protocol and a lending giant.
Impact and Significance
The proposal highlights the growing interdependence of DeFi protocols—a vulnerability in one can swiftly propagate via liquidity channels to others. Aave DAO's involvement demonstrates that even leading lending platforms are not immune. MIP-34 could set a precedent for cross-protocol emergency credit mechanisms, offering a rapid response template for future incidents. However, some community members worry about the credit risk borne by Mantle Treasury and the need for rigorous collateral assessment. Currently, AAVE token price has risen slightly (+0.38%), while ETH is up +0.13%, reflecting cautious optimism.
Next Steps and Outlook
The discussion period for MIP-34 is expected to last about a week, followed by a vote among Mantle governance token holders. If passed, funds will be transferred on-chain and managed via smart contracts. Separately, Chainlink recently enhanced its SVR system and set a record for CCIP activity, providing more reliable infrastructure for cross-chain settlements. As DeFi security incidents become more frequent, we anticipate more protocols will adopt similar models, establishing permanent mutual reserve pools to strengthen the ecosystem's resilience.