After the hack, the latest Aave report proposes two ways to handle its bad debt, and both are problematic

The first spreads losses across all rsETH holders, meaning about a 15% drop to cover roughly 124 million dollars. This unfairly impacts regular users and weakens trust in DeFi

The second shifts the burden to Layer 2 networks like Arbitrum, Base, and Mantle.rsETH there could fall up to 73%, protecting mainnet but severely hurting L2 users and damaging confidence in Aave’s multi chain strategy

In my opinion, a better path would be for Aave to coordinate with LayerZero, Kelp DAO, and other partners to absorb the losses together

Restoring trust matters more than choosing the least painful shortcut

What do you think?