- If the losses are distributed among all users, each user will lose 18.5%. The total debt will amount to approximately $216 million, of which the Umbrella insurance mechanism will cover $55 million, and the Aave treasury will cover another $85 million. The remaining $76 million will have to be covered by borrowing or selling AAVE tokens from the treasury.
- If Kelp abandons rsETH holders on L2, Aave will face $341 million in non-recoverable debt with no coverage through Umbrella. The protocol will have to decide on its own which markets to save and which ones not to. Arbitrum, Mantle, and Base are at risk.
- A third option—returning to the state before the hack via a snapshot—is technically extremely complex due to the movement of funds after the attack. The hacker borrowed $124 million on Aave Mainnet and $18 million on Arbitrum—perhaps this exact amount can be recovered, in which case the final loss would be around $91 million after Umbrella coverage.
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