Linda Jeng, Chief Legal and Policy Officer of Aave Labs, stated at Consensus Miami 2026 that Aave's past risk framework overemphasized financial risk and price volatility, and will now include assessments of cross-chain interoperability, cybersecurity vulnerabilities, and the underlying asset architecture. This reform stems directly from the rsETH incident in April. At that time, attackers exploited a vulnerability in the KelpDAO cross-chain bridge to mint approximately 116,500 uncollateralized rsETH (worth approximately $293 million) and deposited them as collateral on Aave to borrow real WETH, leading to a significant amount of bad debt risk in the protocol. Jeng revealed that Aave will also release a formal "Listing Standards Manual" for asset issuers and begin assessing the interrelationships between DeFi protocols from a systemic risk perspective, rather than analyzing individual liquidity pools in isolation. Furthermore, the "DeFi United" rescue program, involving Lido Finance, EtherFi, Ethena, and others, has been launched to fill the collateral gap and prevent further spread of bad debt. (CoinDesk)