LlamaRisk Proposes $3.8 Billion Cut to Unused Aave Borrowing Capacity

Aave governance could reduce borrowing headroom across its V3 and V4 markets by about $3.8 billion before a phased reopening following the Oct. 29 Binance hot-wallet incident. Risk services provider LlamaRisk proposed lowering limits across 27 V3 reserves and six V4 credit lines. The new caps would be set at about 1.02 times the amounts borrowed before the attack. The changes would remove about $3.7 billion in unused capacity from V3 and $130 million from V4. In Aave V3 Core, the WETH borrowing cap would fall from 2.4 million to 1.79 million tokens.

Source: TokenPost