LlamaRisk to enforce time-based borrowing limits on Aave after Binance hack

LlamaRisk, the risk manager overseeing lending protocol Aave, plans to introduce time-based borrowing limits for the platform. Speaking on the Uneasy Money podcast, CEO Adam Sadowski explained that the new mechanism will cap how much users can borrow from Aave within specified time frames. The announcement came fewer than seven days after a wallet involved in the Binance hot-wallet exploit used USDT as collateral on Aave and borrowed ether against it. The wallet, which Etherscan identified as part of the Binance hot-wallet exploit, posted more than $35 million worth of USDT as collateral on Aave V3’s Ethereum Core market.

Source: CoinTurk News