According to Foresight News, the Aave DAO service provider TokenLogic initiated an 'ARFC' proposal on the governance forum via the Snapshot page, recommending the formal suspension of AAVE token buybacks. This proposal aims to address the LayerZero rsETH bridge path attack incident that occurred on April 18, which resulted in uncollateralized rsETH entering multiple chains' Aave V3 markets.

The proposal indicates that AAVE's buyback operations have effectively stopped since April 19. This proposal aims to formalize that decision. The main goal of pausing the buyback is to maintain flexibility and liquidity of treasury funds until the loss allocation, bad debt situation, and recovery plan related to the rsETH incident are clarified. The resumption of the buyback plan will depend on the subsequent developments of this incident and community evaluation. Previously, Aave had taken defensive measures like freezing rsETH reserves and adjusting interest rates.