PANews reported on April 21 that, according to CoinDesk, an incident report released by Aave revealed that a vulnerability in the Kelp DAO cross-chain bridge resulted in approximately $190 million in loans being used without collateral, exposing Aave to potential bad debt risks. The report from Aave Labs and LlamaRisk indicates that attackers released 116,500 rsETH from the Ethereum sidebridge by forging cross-chain messages, then deposited 89,600 rsETH into Aave as collateral, borrowing approximately $190 million in ETH and related assets. Aave froze the rsETH market within hours and set the loan-to-value ratio to zero. The final loss depends on how Kelp DAO handles the gap: if the loss is distributed among all rsETH holders, rsETH is expected to de-peg by approximately 15%, resulting in approximately $123 million in bad debt for Aave; if the loss is concentrated on Layer 2 networks, the bad debt will rise to approximately $230 million, primarily concentrated on networks such as Arbitrum and Mantle. Following the incident, approximately $6 billion in total locked value was withdrawn from Aave. Aave DAO's treasury holds approximately $181 million in assets and is discussing with ecosystem participants to mitigate potential losses.