Aave is reopening frozen markets while prohibiting certain collateral from backing new loans. LlamaRisk said on October 30 that Aave V3 and V4 have implemented measures to lower borrow caps and temporarily adjust interest rates. LlamaRisk estimates that lowering the caps will remove about $3.8 billion in unused borrowing capacity. The reductions to GHO caps on Core and Prime are still queued for execution. Due to conflicting rate settings, it is currently unclear whether a uniform 10% borrowing rate cap is in place. Withdrawals remain subject to available liquidity and account requirements.
