Aave risk manager models 2 bad debt scenarios from Kelp DAO exploit
Burns Brief
The first scenario is far cheaper but runs the risk of rsETH depegging an estimated 15%, while the second is costlier but better protects Ethereum mainnet and concentrates losses at the layer 2 level The news has rattled market participants, with bears looking to push prices lower while bulls attempt to defend key support levels. Watch $ETH $AAVE for reaction — a decisive move above or below key levels will confirm the next trend.
The first scenario is far cheaper but runs the risk of rsETH depegging an estimated 15%, while the second is costlier but better protects Ethereum mainnet and concentrates losses at the layer 2 level.
Key Takeaways
- The first scenario is far cheaper but runs the risk of rsETH depegging an estimated 15%, while the second is costlier but better protects Ethereum mainnet and concentrates losses at the layer 2 level