Aave Restores Lending on Frozen Markets While Blocking New Collateral Loans
Current overview (not historical)
Aave has lifted the freeze on its V3 and V4 markets, but new loans are effectively blocked: the collateral value of core assets such as USDT and USDC is set to zero. LlamaRisk executed a reduction in borrowing limits—Core markets dropped from 150 M GHO to 105 M GHO and Prime from 85 M GHO to 35 M GHO, a total cut of 95 M GHO—along with temporary interest‑rate changes. This move restores borrowing capacity to levels comparable to Binance’s hot‑wallet limits, yet the zero collateral rule prevents any new loan issuance on the affected assets. The decision reflects a cautious approach to market stability, balancing the need to resume activity with the risk of overexposure to volatile collateral. Stakeholders remain divided on whether the limits and collateral restrictions are sufficient to mitigate potential systemic risk.
Written with AI from the reporting · updated 10/31/2026
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- 1Unclassified fact stationOct 30, 00:00recorded Oct 31, 11:42single sourcerevised
Aave重新开放冻结市场但阻止新抵押贷款
Read original source ↗ CryptoSlateReplay this moment in the explorerEvidence & revisions · 1 source records
- Subject：
- aave
- Action：
- 重新开放冻结市场
- Object：
- 恢复借贷能力
- Occurred (fact side)：
- Oct 30, 00:00
- Published (valid side)：
- Oct 31, 11:40
- First seen (known side)：
- Oct 31, 11:42
Fact stationSingle source · one-sided claimRevisedCopy may have been revised later; time replay is bounded. Layer labels group reading only, not causation between layers.
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- CryptoSlateRelated fact: single sourceSource report revisedAave Restores Borrowing Caps After Freeze, but Caps New GHO Loans
Report first recorded Oct 31, 11:42
Following an emergency freeze on October 29, Aave’s risk service LlamaRisk implemented emergency borrowing‑cap cuts and temporary interest‑rate adjustments on its V3 and V4 platforms. The Core market’s GHO ceiling was reduced from 150 million to 105 million, and the Prime market’s from 85 million to 35 million, a total cut of 95 million GHO. LlamaRisk’s methodology lowered caps by roughly 2 % above the larger of pre‑exploit borrowing or borrowing at the time of observation, targeting assets with more than $10 million borrowed before the incident. The freeze had halted new supply and borrowing while allowing withdrawals, repayments and liquidations. With the caps restored, new borrowing can resume, but the lower ceilings and higher utilization rates (e.g., Core USDC at 97.8 % utilization) mean that liquidity remains tight and borrowing costs may rise. The temporary Slope2 reductions lower the steep part of the borrowing‑rate curve above the optimal utilization point, potentially easing borrowing costs for existing positions.
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- 10Oct 31, 12:00
- 24h change
- -51%
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