Aave announces freezing of rsETH markets on V3 and V4

According to a post by Aave on platform X, the rsETH markets on Aave V3 and Aave V4 have been frozen due to a vulnerability related to the Kelp DAO rsETH bridge. The freeze is intended to prevent new deposits and borrowing using rsETH as collateral until the situation is fully assessed. Aave stated that it is reviewing the relevant information and will provide more details in due course. If the incident results in bad debt, Umbrella assets will be used to offset the deficit.