The borrowing limits for ETH and BTC collateral on $AAVE were officially raised in the early hours of October 29, Beijing time. Risk advisor LlamaRisk posted that its proposal had gone live.
Aave is one of the largest on-chain lending protocols. Deposit crypto as collateral, and you can borrow stablecoins or other assets.
This time, in the Ethereum Core market, the borrowing ratios for WETH, WBTC, and cbBTC were all raised to 81%, allowing users to borrow more against the same collateral. The ratios for wstETH and weETH were also raised slightly, alongside changes to V4.
LlamaRisk said each limit was calculated based on historical sharp price declines, liquidation speed, and exit liquidity. The proposal was put forward on the governance forum in September and implemented after a community vote.
Note that borrowers who use the new limits will also have less room before reaching the liquidation threshold.
Aave is one of the largest on-chain lending protocols. Deposit crypto as collateral, and you can borrow stablecoins or other assets.
This time, in the Ethereum Core market, the borrowing ratios for WETH, WBTC, and cbBTC were all raised to 81%, allowing users to borrow more against the same collateral. The ratios for wstETH and weETH were also raised slightly, alongside changes to V4.
LlamaRisk said each limit was calculated based on historical sharp price declines, liquidation speed, and exit liquidity. The proposal was put forward on the governance forum in September and implemented after a community vote.
Note that borrowers who use the new limits will also have less room before reaching the liquidation threshold.
