Historical bad-debt events
Aave v3's assessment for RD-F-067 — scored red on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
Two bad-debt events in Aave history: (1) Nov 2022 CRV short attack on v2 ~$1.6M, fully DAO-compensated. (2) April 2026 rsETH/Kelp collateral contamination — $123–$230M bad debt UNRESOLVED at assessment date (2026-04-27). As of April 26, 2026, the DeFi United initiative raised ~$160M of ~$200M target (80%). An ARFC proposing 25,000 ETH DAO treasury contribution was in community discussion/feedback stage, not yet passed as AIP. DAO disbursement has not occurred. Methodology threshold: red = ≥2 events OR any uncompensated loss. The April 2026 bad debt remains uncompensated — red confirmed.
Sources #
- URLAave Could Face Up To $230M in Losses After Kelp DAO Bridge ExploitCoinDesk: Aave could face up to $230M in losses after Kelp DAO bridge exploitretrieved 2026-04-27
- [ARFC] rsETH Incident Funding UpdateARFC rsETH Incident Funding Update — ARFC in discussion stage as of April 24–26, 2026; 14,570 ETH pledges + 30,000 ETH Mantle credit + 25,000 ETH proposed DAO contributionretrieved 2026-04-27
- Aave Raises Nearly 80% of the $200M It Needs to Cover Bad DebtCoinDesk: Aave raises ~$160M of $200M needed to cover bad debt from Kelp DAO exploitretrieved 2026-04-27
- rsETH Incident Report (April 20, 2026)Aave rsETH Incident Report April 20, 2026 — $123–230M bad debt range depending on loss allocationretrieved 2026-04-27
Methodology #
Count and sum (USD) the number of documented bad-debt events where the protocol socialized losses across depositors.
See the full factor methodology and distribution across all protocols →