Aave has reopened its frozen market, with assets such as USDT and USDC temporarily unavailable as collateral for new loans.
Aave implemented measures such as lowering borrowing caps and temporarily adjusting interest rates on October 30, gradually lifting market restrictions, after an emergency market freeze on October 29, CryptoSlate reported, citing LlamaRisk. For new loans, the collateral borrowing capacity for assets such as USDT, USDC, USDT0, POL, WAVAX, sAVAX, XAUt, PAXG, and OP remains at zero. LlamaRisk stated that the new caps are set at approximately 2% above the higher of the borrowing scale before the exploit or at the observation point, which is estimated to reduce about $3.8 billion in unused credit while preserving room to restore borrowing to pre-exploit levels.
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