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According to a post by DefiLlama founder 0xngmi, following the KelpDAO hack, Aave is facing pressure to handle bad debt, with three possible solutions: First, socializing the losses among users by reducing asset value by 18.5%, which is expected to result in approximately $216 million in bad debt. Umbrella insurance would cover $55 million, and the treasury would supplement $85 million, still leaving a $76 million gap. Second, executing a "rug pull" for rsETH holders on L2, which would generate around $341 million in bad debt. Third, returning assets based on a pre-attack snapshot, which, after umbrella insurance coverage, would still leave about $91 million in losses. Additionally, it is suggested to confiscate the hacker's collateral to offset part of the bad debt. Aave OG Security Module holds around $300 million AAVE tokens, and a 20% haircut could provide about $60 million in coverage.

The US dollar/South Korean won once rose by 1.5% to 1,481.75, marking the largest gain since March. The US dollar spot index rose by 0.2%. Brent crude oil futures once surged 7.9%, erasing most of last Friday’s losses.

The company stated that the Middle East conflict has triggered rising costs and work suspensions, which may put pressure on corporate profits. In an announcement released last Friday, the company said that the current round of Iran-related conflict will have a limited impact on its earnings for the fiscal year ending March 2026; however, due to the temporary purchase of additional spot liquefied natural gas and a high probability of operational cost increases in the Gulf region, these related risks will be reflected in its performance forecast for the next fiscal year. According to a research report by Mitsui Sumitomo Nikko Securities analyst Koji Kamichika, the ongoing conflict will cause liquefied natural gas procurement costs for Japan Petroleum Exploration per ship to increase by several billion yen. The company also highlighted risks: the supply and demand for chemicals required for domestic Japanese oil and gas field operations remain tight, and there is upward pressure on the company’s operating costs.