Aave WETH restoration AIP is the primary keyword for this Radar update. Aave Labs posted on May 12 that the WETH Unfreeze and LTV Restoration proposal had been raised to AIP stage and that voting would begin shortly.
Radar is covering the item as protocol operations and governance risk. It affects Aave V3 markets across several chains after the April 18 Kelp/LayerZero OFT bridge exploit response.
What Happened
The Aave governance thread says the proposal would restore WETH LTV on Aave V3 Ethereum Core, Ethereum Prime, Arbitrum, Base, Mantle and Linea to pre-exploit values. The same thread says the Protocol Guardian executed WETH unfreeze on Arbitrum, Base, Mantle and Linea on May 10.
The post also describes the recovery backdrop: attacker positions were liquidated, 106,993 rsETH was recovered across Aave and Compound, remaining shortfall coverage is tied to DeFi United funds, and a New York court authorised an onchain Arbitrum DAO vote regarding immobilised ETH.
Why It Matters
This matters because Aave risk parameters are live protocol controls, not abstract governance language. Restoring LTV can reduce friction for users, but it also requires researchers to track execution timing, affected markets and any remaining exclusions.
The May 12 AIP-stage update is especially important because it moves the event from advisory discussion toward vote and implementation. Protocol users should know whether their chain, market and E-Mode assumptions are included.
What To Watch Next
Watch the AIP vote link, vote window, payload details and final execution transactions. Confirm whether WETH base LTV and E-Mode flags are restored exactly as specified across the listed markets.
Researchers should also keep following the rsETH restoration plan. The WETH restoration is tied to recovery progress, so any change in bad-debt coverage or market liquidity can affect the operational read.
The operational read should stay chain-specific. A WETH restoration can be broadly positive while still depending on exact payload timing, market inclusion and post-vote execution. Radar readers should confirm the final onchain state rather than assuming the AIP-stage post already changed every deployment.
Continue this cluster
Continue this cluster with governance and protocol-risk updates that connect forum-stage proposals to real onchain execution.
