Update
Aave Reopens Frozen Markets but Blocks New Collateral Loans
LlamaRisk reports that Aave has executed lower borrowing ceilings and temporary interest-rate changes on its V3 and V4 markets. The measures follow an Oct. 29 emergency freeze after LlamaRisk initially assessed the exploiter’s Aave position as overcollateralized and subject to normal liquidation. Aave’s draw caps apply to individual credit lines, called spokes, which draw assets from a shared hub. LlamaRisk’s cap methodology considers the larger of borrowing before the exploit and borrowing at its observation time, adding roughly 2%, with asset-specific rounded ceilings. The measures preserve borrowing room to return to pre-Binance hot-wallet levels, even as they remove about $3.8 billion of unused capacity.