Mantle’s MIP-34 introduces a structured response following the Kelp-related bad debt event, with a proposal to lend 30,000 $ETH to support the Aave DAO.
The terms are defined: interest set around Lido staking yield plus a premium, a multi-year duration, and collateral that includes AAVE tokens alongside protocol revenue.
Instead of emergency measures, this approach uses a credit framework between protocols to manage a large deficit.
What stands out is the structure:
predefined terms
collateral backing
coordination between DAOs
It shows how DeFi systems are starting to handle stress using internal mechanisms rather than external intervention.
Whether this model becomes more common will depend on how it performs over time, but it reflects a shift toward more formalized risk management inside the ecosystem.