LlamaRisk Plans Lower Aave Caps Ahead of Reopening

LlamaRisk plans to use Aave’s Risk Steward mechanism to lower borrowing limits across V3 and V4 before markets reopen in stages, citing the risk that the party it identifies as responsible for the Binance theft could use remaining capacity to build a large position. The proposed changes would reduce unused borrowing capacity by about $3.7 billion on V3 and $130 million on V4. They target markets where borrowing before the incident exceeded $10 million and the remaining room under the cap also topped $10 million.