What Aave's proposed freeze on osETH, rETH and 3 other assets would mean
LlamaRisk proposed on Nov 10 that
$AAVE V3 Core keep only liquid, established collateral. First step: freeze rsETH, osETH, LBTC, tBTC and rETH, which held $1.33B of collateral backing $1.03B of debt as of Nov 9. Nothing is decided. It's a forum discussion, not a vote.
A freeze means:
• No new supply of those assets
• LTV set to zero, so no new borrowing against them
• Existing positions left untouched
• Then an "orderly migration" toward Aave V4
osETH is the flashpoint. CryptoSlate puts it at about $279M of collateral backing roughly $256.6M of WETH debt, around 14x leverage in E-Mode, with the top ten positions holding 66% of that debt. (Those figures are CryptoSlate's, not the forum post's.) StakeWise wants its own vote; Rocket Pool asked the same for rETH.
My read: a freeze doesn't force anyone out, but it caps growth of leveraged
$ETH staking loops on the biggest DeFi lender. Watch whether the vote splits asset by asset or passes as one package.
Should a token with a clean record as collateral be judged separately from the rest?
#Aave #DeFi
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