Update
Aave V3 Core Proposal to Restructure
Aave, a decentralized finance (DeFi) platform, is proposing to restructure its V3 Core, the largest market in Aave, by removing certain categories of exposure. The proposal includes assets that are restaked, leveraged, or issued by entities with insufficient operational and security resources. LlamaRisk, an Aave Protocol Risk Manager, suggests moving $1.52 billion in collateral backed by $1.17 billion in debt to a more liquid, blue-chip collateral category. The goal is to improve the risk profile of V3 Core and potentially transition some affected assets to Aave V4 markets, where more granular risk controls are in place.