ACI founder says Binance hacker debt is only 0.9% of Aave’s wETH reserves
Marc Zeller, founder of Aave Chan Initiative, said on X that Aave remains safe after the Binance hacker deposited 60 million USDT into the protocol and borrowed 19,762 wETH, worth about $44.9 million at the time. He said the position was still overcollateralized from the protocol’s perspective, with a health factor of 1.04, roughly $59.9 million in collateral, and $44.9 million in debt. Zeller noted that Tether had not yet frozen the address when the borrowing took place, and Aave’s Guardian had not frozen reserves in the Aave V3 Core pool until 46 minutes later. He argued that if ETH rises to about $2,365, or roughly 4% higher, the position can be liquidated through Aave’s normal liquidation process. He added that the debt accounts for only 0.9% of the Aave V3 Core pool’s total wETH reserves of 2.16 million wETH. Available liquidity stands at 345,000 wETH, with utilization at 81.6%, which he said is enough to meet withdrawals by wETH depositors. Zeller also said a governance proposal could theoretically force liquidation, but he sees little benefit in doing so because the standard liquidation mechanism can absorb the debt on its own.
