LlamaRisk proposes to unload approximately $1.33 billion in Aave V3 collateral
According to The Defiant, Aave risk management agency LlamaRisk proposed a governance proposal that plans to gradually remove approximately $1.33 billion in collateral from the Aave V3 Core market on Ethereum to promote the return of the core market to underlying assets with ample liquidity. The affected core assets mainly include rsETH (collateral amount of $661.8 million), osETH ($279.4 million), LBTC ($177.4 million), tBTC ($117.4 million) and rETH ($81.8 million), in addition to eBTC, BTC.b, tETH, PT assets and LDO etc.; mainstream collaterals such as WETH, wstETH, weETH, cbETH, WBTC, cbBTC and USDe will be retained. The plan is still in the discussion stage. The initial measures will first freeze relevant reserves and set LTV to 0, leaving time for borrowers to repay, replace or migrate to Aave V4 without directly liquidating existing exposures. It is also planned to increase the reserve factor of related assets to 99% to guide the smooth exit of funds.
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