Aave borrowers face high costs as freeze blocks new collateral

Community Trust Score Verified 89 % Real Verified 9 votes Updated 57 seconds ago Aave borrowers in frozen reserves continued to pay interest at rates of up to 36% annual percentage rate ( APR ) while the protocol blocked fresh deposits. The restrictions, implemented during the Binance hack, prevented users from supplying additional collateral to protect existing loans, creating a scenario where debt serviced costs remained high despite the inability to adjust loan positions. The freeze on deposits in specific Aave reserves meant that borrowers could not increase their collateral ratios.

Source: The Currency Analytics