LlamaRisk Proposes $3.8B Aave Cap Cuts Before Markets Reopen
- —Proposal removes about $3.7 billion of unused borrowing capacity on Aave V3
- —A further $130 million in caps would be cut on V4
- —The current market freeze already blocks new borrowing
Why it matters: The cap cuts reduce Aave's liquidity risk after the Binance incident and limit new borrowing before markets reopen.
Source: The Defiant