Mantle’s MIP-34 shows how DeFi protocols can manage large-scale risk events in a structured way
After the $292M Kelp exploit, Mantle Network proposed lending 30,000 $ETH to Aave DAO to cover the bad debt.
Key details:
- Interest: Lido APR + 1%
- Duration: 36 months
- Collateral: $11M in AAVE tokens + protocol revenue
Instead of emergency fundraising or protocol shutdowns, the situation was handled through a structured credit arrangement.
The $ETH ecosystem absorbed a significant loss while maintaining stability.
This reflects a shift toward more mature, DAO-to-DAO financial coordination within DeFi.