DefiLlama Founder Discusses Arbitrum's Impact on Aave's Debt

DefiLlama founder 0xngmi recently shared insights on the X platform regarding Arbitrum's financial strategies. According to Odaily, 0xngmi stated that if Arbitrum prioritizes using seized funds for the AAVE market on its platform, Aave could potentially eliminate bad debt on Arbitrum. Furthermore, if the focus is solely on maintaining the value of mainnet rsETH, disregarding the Layer2 mapped version, Aave's bad debt on Arbitrum could be reduced by 80%, from $88 million to $17 million.