DefiLlama founder: After Arbitrum seizes the hacker's funds, Aave's bad debt on that L2 will be reduced by at least 80%

DefiLlama founder 0xngmi posted on platform X, stating that after verifying the data, if the funds seized by Arbitrum are prioritized for use in the AAVE market on Arbitrum, Aave will have no bad debt on Arbitrum under the condition that all rsETH share the depreciation.

In a scenario where only the value of the mainnet rsETH is guaranteed (ignoring the value of the mapped version of rsETH on Layer 2), Aave will reduce bad debt on Arbitrum by 80%, from $88 million to $17 million.