PANews reported on May 9th that Aave released an update on its X platform stating that the second phase of its rsETH recovery plan has made progress. On May 6th, the attacker's eight positions on Aave V3 were liquidated, and the recovered rsETH collateral has been transferred to Recovery Guardian. Governance proposals from both Mantle DAO and Arbitrum DAO have been passed. The court has approved the transfer of frozen ETH to Aave LLC via an on-chain vote on Arbitrum DAO, and the restraining order will take effect simultaneously with the asset transfer. As a contingency plan, funds will be borrowed to cover the shortfall until the frozen ETH is returned.

The next phase of the plan includes: burning the liquidated rsETH on Arbitrum; Kelp will retract the corresponding LayerZero data packet on Ethereum to eliminate the fraudulently minted rsETH supply. On Ethereum, the recovered rsETH will be sent to the bridge staking contract, combined with ETH raised by the DeFi United consortium, to restore the asset backing of rsETH. After the bridge is restored, rsETH withdrawals will reopen, and temporary configuration adjustments on Aave will be reversed. The WETH loan-to-value ratio on Aave V3 Ethereum Core will soon recover.