Aave governance moved to overhaul its asset listing framework following a $230 million exploit tied to rsETH, a restaked ETH derivative, which exposed systemic risk from cross-chain bridge dependencies embedded in collateral assets. The incident highlighted that bridged or multi-hop LST assets carry smart contract and bridge failure risks that are not fully captured in standard volatility-based haircut models. Aave's revised standards are expected to impose stricter bridge audit requirements and liquidity thresholds for new listings.
Armada's crypto-repo desk accepts ETH and related collateral. The rsETH exploit is a direct precedent for why restaked or bridged ETH derivatives require heightened scrutiny distinct from native ETH or major LSTs like wstETH. Armada should verify that its collateral schedule explicitly distinguishes between native ETH, audited LSTs, and bridged or restaked derivatives, and align LTV haircuts with Aave's updated risk framework as an external benchmark.