Mantle Community Approves Loan Proposal to Aave DAO

Mantle Community has approved proposal MIP-34, authorizing Mantle Treasury to provide a loan of up to 30,000 ETH to Aave DAO. According to ChainCatcher, the loan aims to address the impact of bad debt on Aave V3 caused by the rsETH cross-chain bridge security incident. The proposal outlines a maximum loan term of 36 months with an interest rate of LIDO plus 1% annually. Borrowers can repay the loan early without penalties. In terms of risk management, Mantle will have priority security rights over the collateral assets. Additionally, Aave will offer supplementary collateral valued at no less than $11 million in Aave tokens and protocol revenue. Aave will also delegate 130,000 Aave tokens to Mantle for governance participation.