Aave Freezes Ethereum tBTC Reserve to Limit Exposure During Minting Pause

Aave froze its tBTC reserve in the Ethereum Core market to prevent its exposure from increasing during Threshold Network’s pause in tBTC minting and redemptions. The change blocks new deposits to that reserve and new borrowing backed by tBTC. Users with existing positions can still repay debt and withdraw assets, and liquidations remain governed by the market’s current rules. The liquidation threshold is unchanged, and the freeze itself does not trigger liquidations. The move follows Threshold Network’s suspension of new BTC-to-tBTC issuance and redemption requests during security maintenance.

Also reported by The Defiant.

Source: TokenPost