@hasufl@bkiepuszewski Wrong. rsETH on L2 are not burned&minted, they are stored in a proxy contract on mainnet (OFT adapter), L2 are IOUs in rsETH case. This is why they only stole 116k because that's what was stored on mainnet.
Some OFTs actually burn and mint tokens like PYUSD.
@crypto_condom@aave I think it remains to be seen if there is permanent erosion or just short term taking shelter. All depends how this will get resolved
Introducing aWETH Redemption Protocol
With ETH utilization at 100% on Aave, many lenders are currently unable to withdraw and face increasing risk if markets move.
aWETH Redemption Protocol allows ETH lenders to:
• Exit into wstETH or weETH
• Regain immediate liquidity
• Reduce exposure to liquidation risk
If you’re just lending ETH — you can fully exit.
If you have ETH collateral and another debt — your collateral is seamlessly swapped into wstETH or weETH while your debt remains the same.
We’re working alongside @LidoFinance , @ether_fi, @0xProject, @1inch,
@KyberNetwork, and other ecosystem partners to:
• Reduce systemic risk in DeFi
• Ease utilization pressure
• Support a healthier DeFi market
Our goal is simple: protect users while reinforcing the foundations of DeFi.
Capacity is initially limited to $1B in ETH.
https://t.co/VBIAT9FZyg
@evrgn11112231 >Claude is arrogant, full of shit often, and loves to waste time and spin wheels and pontificate.
They captured essence of SWE perfectly!
@griffgreen@KelpDAO L2 rseth holders took additional bridge risk (most of them didnt understand it). Spilling this to L1 rseth holders, who didn't accept those risks would just bad.