Mantle’s proposal to borrow up to 30,000 $ETH for Aave’s DeFi United rsETH rescue has gone live on Snapshot, adding structured credit to a $314 million multi-DAO war chest.
Mantle Network has confirmed that its proposal for a strategic credit facility to support Aave’s rsETH relief efforts has formally advanced to a board vote.
Mantle’s rsETH Rescue Loan Hits Snapshot
In a post shared by Mantle, the team said the measure – known on the forum as MIP-34 – is now live on Snapshot, requiring MNT token holders to delegate their voting rights before participating.
If approved, the proposal would authorize Mantle Treasury to borrow up to 30,000 $ETH to Aave DAO as part of DeFi United’s bailout plan, with the funds specifically earmarked to clear bad debt and collateral shortages created by the April 18 rsETH bridge exploit.
How the Mantle-Aave facility is structured
Under the MIP-34 design, Mantle’s loan would have a term of up to 36 months and pay a variable yield benchmarked to the striking yield on Lido’s stETH plus a 1% spread, converting inactive government bonds $ETH in a return-bearing position instead of a one-off subsidy.
On the other hand, Aave DAO has proposed to back the facility with 5% of protocol revenues and at least $11 million in $AAVE tokens, while Mantle also granted delegated governance rights for approximately 130,000 $AAVE align incentives.
The collateral would be held in a multisig wallet, with no prepayment penalties and default protections designed to limit Mantle’s downside if the broader rSETH recovery does not meet expectations.
Aave founder Stani Kulechov has described the broader DeFi United framework as “the largest DAO coordination I have participated in,” pointing to parallel governance processes at Arbitrum, Aave, EtherFi, Lido, Compound, and Mantle.
DeFi Uniteds $ETH war chest is $314 million
The credit facility is in addition to a large pool of committed credits $ETH and stETH gathered under the banner of DeFi United.
As Phemex and other trackers note, the designated donation and assistance addresses associated with the initiative are now 1,137,714,633. $ETHworth approximately $314.57 million at current prices.
Previous updates from KuCoin and WEEX showed the total increase of 13,500 $ETH in early donations to more than 100,000 $ETHwith important contributions from Arbitrum DAO (30,765 $ETH of previously frozen funds), Mantle’s planned 30,000 $ETH loan, AaveDAO’s proposed 25,000 $ETHEtherFi is 5,000 $ETHLido’s 2,500 stETH, and personal and institutional commitments from Stani and the Golem Foundation.
The goal is to make an estimated 68,900–118,000 connections $ETH shortage of support from rsETH following the operation of the KelpDAO bridge and to restore healthy collateral ratios in Aave and other integrated credit markets.
Legal analysis from firms following the case, such as Travers Smith and others, have positioned DeFi United as a landmark example of “on-chain interventions” coordinated across multiple DAOs, with the Mantle-Aave loan seen as a test of whether structured credit facilities can supplement donations in major DeFi rescues.
For users affected by the rsETH incident, the combination is immediate $ETH contributions, government-approved credit lines and technical solutions at the protocol level – if fully implemented – should provide more opportunities to exit or rehabilitate positions than a simple liquidation and write-down process.