Aave executes zero-LTV deprecation for nine volatile assets

What happened

Aave Governance V3 executed proposal 409, setting the LTV of nine low-demand volatile assets to zero across Ethereum Core, zkSync, BNB, and Metis.

What changed

The affected assets no longer provided additional borrowing capacity under their base reserve configurations, advancing their deprecation.

What did not change

The payload did not freeze the reserves, set their liquidation thresholds to zero, or establish that existing positions had been closed.

Confirmed

• Proposal 409 executed on November 14, 2025.
• Ethereum Core UNI, CRV, BAL, ENS, LDO, and 1INCH had their LTVs set to zero.
• ZK on zkSync, CAKE on BNB, and METIS on Metis had their LTVs set to zero.
• The proposal was described as the second stage of a broader low-demand-asset deprecation process.

Still open

• Remaining supplied collateral, debt, and client exposure in each affected reserve.
• Subsequent freeze, reserve-factor, cap, or full-offboarding actions.
• Exit liquidity and borrower behavior following the zero-LTV change.

What it means for an advisor

• Review any affected Aave collateral position for reduced borrowing capacity and migration needs.
• Update collateral-eligibility assumptions in the Aave memo while distinguishing zero LTV from a reserve freeze or immediate liquidation-threshold change.
• Monitor subsequent deprecation stages and live exit liquidity.