Aave Risk Management Agency Proposes Phased Exit From $1.33 Billion Collateral

On November 11, according to The Defiant, Aave risk management firm LlamaRisk has proposed a gradual exit from certain collateral assets in Aave V3 Core. As of November 9, these assets account for approximately $1.33 billion in collateral value, supporting roughly $1.03 billion in debt.

The proposal involves assets such as rsETH, osETH, LBTC, tBTC, and rETH. Initial measures would freeze relevant reserves and set the loan-to-value ratio to zero, halting new deposits and borrowing against these assets, but existing loans will not be immediately liquidated. Borrowers can still repay, withdraw funds, or migrate to V4.

The proposal remains under discussion, and the initial measures require approval and must be submitted as an on-chain governance proposal. Should migration stall, the liquidation thresholds for certain assets may be gradually lowered subsequently.