Aave Lifts V3 and V4 Market Freeze After Binance Security Alert

Aave restored normal operations across all its V3 and V4 markets after lifting a precautionary freeze prompted by early information about a security incident involving Binance. Aave had paused new deposits and borrowing after receiving an initial alert. Withdrawals and loan repayments remained available, allowing users to access assets and reduce existing debt during the restriction. Aave said its smart contracts were unaffected and user positions remained fully collateralized throughout the episode. Some restrictions remain. Loan-to-value (LTV) settings for USDT, USDC, USDT0, POL, WAVAX, sAVAX, XAUT, PAXG and OP will stay at zero as a continuing precaution.