Aave Freezes tBTC Reserve in Ethereum Core Market, Pauses New Deposits and Collateralized Borrowings

TechFlow reported on October 31 that, according to a governance forum announcement by Aave risk provider LlamaRisk, after Threshold Network paused tBTC minting and redemption, Aave has preemptively frozen the tBTC reserve in the V3 Ethereum Core Market, halting new tBTC deposits and new borrowings collateralized by tBTC.

Users can still repay and withdraw assets, liquidations continue to operate, and the health factors of existing positions will not change due to the freeze. This freeze only affects the tBTC reserve in the Ethereum Core Market; other reserves are unaffected, and the market itself has not been paused.

LlamaRisk said it will continue monitoring Threshold updates as well as tBTC positions and secondary market liquidity, and will propose recovery measures after confirming that tBTC operations have returned to normal.

Source: TechFlow