Devoured - April 28, 2026
Aave to Vote on Pausing AAVE Buybacks After rsETH Attack (2 minute read)

Aave to Vote on Pausing AAVE Buybacks After rsETH Attack (2 minute read)

Crypto defisecurity Read original

Aave is voting to pause its token buyback program following an rsETH exploit that caused significant TVL outflows from the protocol.

What: After an rsETH exploit affected Aave, the protocol's DAO is voting on pausing AAVE token buybacks to preserve treasury funds for recovery efforts. The protocol reportedly took the largest hit among parties involved, though users are expected to be made whole.
Why it matters: This shows how DeFi protocols must balance token economics with crisis management, and demonstrates governance mechanisms responding to security incidents by prioritizing user recovery over token appreciation strategies.
Decoder
  • rsETH: A liquid staking token that was exploited in a recent hack
  • Buyback: When a protocol uses treasury funds to purchase its own tokens from the market, typically to reduce supply and increase token value
  • DAO: Decentralized Autonomous Organization - a community-governed entity where token holders vote on decisions
  • TVL: Total Value Locked - the total amount of assets deposited in a DeFi protocol
Original article

Following the rsETH exploit, Aave is set to vote on pausing $AAVE buybacks to give the DAO treasury more flexibility during recovery.