Worried that collateral on Aave V3 Core being added to the list will trigger immediate liquidation? LlamaRisk’s governance proposal is still awaiting a vote. Over the latest full 6-hour period, AAVE was up 0.11% and lending peer COMP was up 0.40%; there is no clear sign that expectations of immediate liquidation are being priced in separately—and this is not a governance outcome.
If passed and implemented, the initial freeze would stop new supply and borrowing, and set collateral LTV to 0, without affecting existing positions. Assets on the list correspond to about $1.03 billion in debt. If migration falls short, liquidation thresholds could then be lowered gradually.
Borrowers with affected positions can first check their market and collateral assets. Migrating early has operational costs, while staying put carries the risk of future parameter changes. The key developments that could change this assessment are the governance vote and on-chain implementation. (Source: Aave Governance Forum/LlamaRisk, November 10)
If passed and implemented, the initial freeze would stop new supply and borrowing, and set collateral LTV to 0, without affecting existing positions. Assets on the list correspond to about $1.03 billion in debt. If migration falls short, liquidation thresholds could then be lowered gradually.
Borrowers with affected positions can first check their market and collateral assets. Migrating early has operational costs, while staying put carries the risk of future parameter changes. The key developments that could change this assessment are the governance vote and on-chain implementation. (Source: Aave Governance Forum/LlamaRisk, November 10)
