The Solana Foundation, the nonprofit that stewards development of the Solana blockchain, has deployed part of its treasury in Tether into Aave for the first time to support recovery efforts post-KelpDAO exploit, according to Lily Liu, who chairs the Foundation.
The Foundation also plans to bring Aave’s governance token to Solana this weekend.
The exploit affected Aave when attackers minted unbacked rsETH tokens by exploiting a misconfiguration in LayerZero’s verification system. These tokens were then deposited into Aave as collateral, allowing the withdrawal of roughly $190 million in real assets.
While Aave’s protocol operated as designed, the incident created significant bad debt exposure due to invalid collateral.
Source: https://cryptobriefing.com/solana-foundation-supports-aave-usdt-deployment/
