DeFi· ★★★· neutral·

Aave raises BTC and ETH collateral borrowing limits across V3 and V4

  • —Borrowing limits for WBTC and cbBTC collateral rose about 11%
  • —The change applies to both Aave V3 and V4 deployments
  • —Using the full new limit reduces the buffer before liquidation
Why it matters: Higher limits give BTC holders more leverage capacity, but raise liquidation risk if prices fall sharply.
Source: The Defiant