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DefiLlama Founder: After Arbitrum seizes hacker funds, bad debt on Aave on that L2 will decrease by at least 80%
ChainCatcher news, DeFiLlama founder 0xngmi posted on X platform stating that after verifying the data, if Arbitrum prioritizes using the seized funds for the AAVE market on Arbitrum, then under all rsETH co-impairment scenarios, Aave on Arbitrum will have no bad debt at all.
By only safeguarding the value of mainnet rsETH (ignoring the value of mapped rsETH on Layer 2), Aave on Arbitrum reduces bad debt by 80%, from $88 million down to $17 million.