AAVE Governance Proposal: Gradual Repayment of Approximately $1.33 Billion in Collateral
2026-11-11 08:16:46
According to CoinMeta, the risk management firm LlamaRisk has proposed a governance initiative to gradually withdraw approximately $1.33 billion in collateral from the AAVE V3 Core market on Ethereum, with the aim of promoting the core market back to assets with sufficient liquidity. The affected core assets mainly include rseth ($661.8 million in collateral), oseth ($279.4 million), lbtc ($177.4 million), tbtc ($117.4 million), and RETH ($81.8 million). In addition, ebtc, BTC.b, teth, pt, LDO, as well as WETH, wsteth, weeth, CBETH, WBTC, cbbtc, and USDE among other mainstream collaterals will be retained. Currently, this plan is still in the discussion stage. Preliminary measures will involve freezing the relevant reserves and setting LTV to 0, allowing borrowers time to repay, replace, or migrate to AAVE V4 without directly liquidating existing positions. At the same time, it is proposed to increase the reserve factor for these assets to 99% to guide a smooth withdrawal of funds.
Source:The Defiant
This content is for market information only and does not constitute investment advice.
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