LlamaRisk Proposes Cutting Borrowing Caps Before Aave Resumes, Plans to Remove ~$3.7 Billion in Unused V3 Limits

On October 30, according to The Defiant, risk management firm LlamaRisk proposed lowering borrowing limits ahead of the Aave market's reopening. The proposal aims to remove approximately $3.7 billion of unused borrowing capacity on Aave V3 and roughly $130 million on V4. The current freeze measures remain in effect, continuing to block new loans.