Aave reopens frozen markets but blocks new collateral loans
Summary
After an Oct. 29 emergency freeze, LlamaRisk lowered borrowing caps and temporarily adjusted interest-rate parameters on Aave V3 and V4, aiming to keep borrowing near pre-exploit levels. The changes remove about $3.8 billion in unused capacity, while queued GHO cuts would reduce caps by 95 million GHO. During the freeze, users could withdraw, repay and liquidate, but not supply or borrow; high utilization left some reserves with limited withdrawal liquidity. Reopening remains subject to available pool liquidity, market permissions and collateral rules. Some proposed rate settings conflict with the stated 10% ceiling, and LlamaRisk’s update does not clarify which settings were deployed.
