LlamaRisk has proposed cutting borrowing caps on Aave ahead of a market reopening, while the protocol’s existing freeze continues to block new loans. Under the plan, about $3.7 billion in unused borrowing capacity would be removed from Aave V3, along with roughly $130 million on V4. The proposal focuses on trimming unused headroom rather than reopening lending activity, as fresh borrowing remains unavailable under the current restrictions. The report is tied to Aave, borrowing and lending, and liquidity, according to the source material from The Defiant. No additional details on timing beyond the pre-reopen framing were provided in the source summary.
LlamaRisk has proposed reducing Aave borrowing caps before markets reopen.
The plan would remove about $3.7 billion of unused borrowing capacity on Aave V3 and about $130 million on V4. The current freeze remains in place, which means new loans are still blocked.
Aave-related coverage
The source tags this development under Aave, borrowing and lending, and liquidity.
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