Following the KelpDAO-related rsETH crisis, risk management measures are expanding in the DeFi ecosystem, and Aave has taken another new governance step.
A new proposal from TokenLogic, which provides services to the Aave ecosystem, foresees the temporary suspension of the $AAVE token buyback program.
The proposal states that $AAVE buybacks will cease as of April 19, 2026, and this decision will be officially put to a community vote. The vote is scheduled to begin on April 28, 2026.
The rationale for the proposal highlighted the uncertainty that arose after the security breach on KelpDAO’s LayerZero-based rsETH bridge on April 18th. Following this incident, “uncollateralized rsETH” inflows occurred on different chains on Aave, protocol administrators froze rsETH and wrsETH reserves, and made various adjustments to WETH interest rates.
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According to TokenLogic, it is still unclear how the losses from rsETH will be distributed, how much will be recovered, and what role Aave DAO will play in this process. Therefore, maintaining the flexibility of the DAO treasury is considered critical during this period. The statement added that directing the proceeds to the buyback program during this process could reduce its capacity to contribute to a potential rescue plan.
In this context, it was stated that the $AAVE share buyback program will remain suspended until the uncertainties surrounding the rsETH crisis are resolved, and its relaunch will depend on future assessments.
*This is not investment advice.
