Aave weighs higher Bitcoin leverage, cutting liquidation cushion to 4.7%
- —Maximum LTV for WBTC and cbBTC on Ethereum Core would rise from 73% to 81%
- —Liquidation threshold would increase from 78% to 85%, cutting the price cushion from 6.4% to 4.7%
- —Arbitrum WBTC LTV would rise 5 points and Base cbBTC 8 points
- —LlamaRisk based its case on liquidation data from August 2025 to August 2026
Why it matters: Higher LTV gives borrowers more capital against Bitcoin but leaves less room before forced liquidation in a sharp price drop.
Source: CryptoSlate