Aave Restores WETH Collateral Limits Across Six Networks After Exploit

On May 18, 2026, Aave restored WETH loan-to-value ratios to pre-incident levels across Ethereum Core, Ethereum Prime, Arbitrum, Base, Mantle and Linea. The rollback follows April’s Kelp DAO rsETH exploit that created roughly $292 million in invalid tokens and enabled attackers to withdraw about $230 million in ETH. Specific restored rates include 80.5% on Ethereum Core, 84% on Ethereum Prime and 80% on Arbitrum. While the change reopens leveraged borrowing capacity, Aave emphasized it is only a risk-parameter adjustment and does not confirm full market normalization. Attention now shifts to resolution of remaining asset shortfalls and ongoing legal claims.