LlamaRisk has proposed reducing borrowing caps on Aave to limit new loan activity when the protocol reopens. The plan would remove approximately $3.7 billion of unused borrowing capacity on Aave V3 and $130 million on Aave V4.
New loans remain frozen under the current proposal, signaling a cautious approach to restoring lending functionality while managing potential risk exposure across both versions of the protocol.
LlamaRisk Proposes Aave Borrowing Cap Cuts of $3.8B to Restrict New Loans at Reopening
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