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Cryptoprowl / Mantle’s core contributor team has proposed a loan of up to 30,000 ETH from the Mantle Treasury to Aave DAO, creating a potential credit facility to help address bad debt tied to the recent rsETH exploit. The draft proposal, known as MIP-34, is still in the discussion stage and has not yet moved to a formal vote. Its proceeds would be used only to remediate the impact of the rsETH incident on Aave V3. 

The proposal turns a security crisis into a broader test of how large DeFi treasuries respond when risk crosses protocol boundaries. The April 18 breach involving Kelp DAO’s rsETH bridge led to the unauthorized minting of 116,500 rsETH, worth about $292 million at the time. The attacker then supplied 89,567 rsETH as collateral on Aave V3 and borrowed legitimate assets valued at roughly $190 million, creating potential bad debt that Aave service providers have been trying to contain. 

Mantle’s proposed facility would carry an interest rate of Lido staking yield plus 1%, with a maturity of up to 36 months and early repayment allowed without penalty. The draft also frames the loan as a way to convert idle treasury assets into a yield-generating position while strengthening Mantle’s relationship with Aave and potentially accelerating Aave’s deployment on Mantle Network.  

Other parts of DeFi are already circling the same recovery effort. Aave founder Stani Kulechov has personally committed 5,000 ETH, while EtherFi Foundation has proposed another 5,000 ETH (CRYPTO: $ETH ), Golem entities have pledged 1,000 ETH, and Lido has discussed up to 2,500 stETH. Bybit co-founder and CEO Ben Zhou, whose exchange is a major Mantle backer, said Bybit would support the proposal, arguing that the industry should unite in difficult moments. 
 
If the proposal advances, it could become a notable precedent for DeFi crisis response: not a grant, not a bailout in the traditional sense, but a structured treasury loan designed to stabilize a major lending market while still earning a return for the DAO providing capital. 

Mantle (CRYPTO: $MNT ) is currently sitting at $0.6479 U.S. per digital token, while Aave (CRYPTO: $AAVE ) is trading at $93.95 U.S. per digital token.