Aave V3 frozen reserves have been unfrozen; assets such as USDT are temporarily unavailable for new collateralized borrowing.

TechFlow news, Oct. 31, according to an update posted by Aave risk service provider LlamaRisk on the governance forum, Aave is unfreezing markets frozen due to the Binance theft incident in four phases. All Aave V3 reserves frozen in this incident have been unfrozen, while the loan-to-value (LTV) ratio remains at 0 for now.

Subsequent phases will restore LTV for most V3 reserves and unfreeze Aave V4 reserves. Assets held by hacker address clusters, including USDT, USDC, USDT0, POL, XAUt, and PAXG, will continue to have an LTV of 0 on V3 and a collateral factor of 0 on V4, restricting only new borrowing capacity. Normal deposits, withdrawals, borrowing, and repayment are unaffected.

In addition, LlamaRisk has lowered the caps on key borrowing paths, reducing idle borrowing capacity by approximately $3.7 billion on V3 and approximately $130 million on V4.

Source: TechFlow