Aave will freeze $279M in osETH, unless StakeWise wins this vote
Summary
StakeWise founder Dmitri asked Aave governance to vote separately on freezing osETH as collateral, rather than adopting LlamaRisk’s proposed restrictions without a distinct assessment. LlamaRisk says osETH backs about $256.6 million in WETH debt on Aave, with leverage and concentrated positions creating risks for pooled lenders. Its proposal would stop new osETH exposure while allowing existing borrowers to migrate or unwind gradually, using a rate increase only as a last resort. Dmitri cited StakeWise’s record without hacks or validator slashing and asked for time to address concerns. Governance’s decision will shape how Aave reduces osETH risk while managing borrower migration and lender exposure.
