For an existing Aave V4 position backed by USDT or USDC, a new borrow or collateral change can also change the rules applied to that collateral.
LlamaRisk's October 30 reopening update says existing V4 positions keep their current collateral settings until a new borrow, a collateral withdrawal or a collateral toggle moves them to new settings. Under those settings, the affected assets have a collateral factor of zero and cannot add borrowing power.
The list covers USDT, USDC, USDT0, POL, WAVAX, sAVAX, XAUt, PAXG and OP, including their bridged and wrapped versions. The restriction concerns using them as collateral, not borrowing those tokens.
V3 treats existing positions using these assets differently: their liquidation thresholds stay unchanged, so this parameter change does not alter their health factors. They still lose the ability to add new borrowing power from the affected collateral.
This is the plan described in LlamaRisk's update labelled 13:49 UTC, not confirmation that every market has reopened.
Source: Aave governance forum, October 30, 2026.
https://governance.aave.com/t/binance-hot-wallet-exploit-aaves-response/25954
#Aave #DeFi
LlamaRisk's October 30 reopening update says existing V4 positions keep their current collateral settings until a new borrow, a collateral withdrawal or a collateral toggle moves them to new settings. Under those settings, the affected assets have a collateral factor of zero and cannot add borrowing power.
The list covers USDT, USDC, USDT0, POL, WAVAX, sAVAX, XAUt, PAXG and OP, including their bridged and wrapped versions. The restriction concerns using them as collateral, not borrowing those tokens.
V3 treats existing positions using these assets differently: their liquidation thresholds stay unchanged, so this parameter change does not alter their health factors. They still lose the ability to add new borrowing power from the affected collateral.
This is the plan described in LlamaRisk's update labelled 13:49 UTC, not confirmation that every market has reopened.
Source: Aave governance forum, October 30, 2026.
https://governance.aave.com/t/binance-hot-wallet-exploit-aaves-response/25954
#Aave #DeFi