Aave freezes the wstETH reserve on Plasma

What happened

Aave Governance V3 executed proposal 410, freezing the wstETH reserve on Plasma after Lido and Chainlink decided to replace the existing cross-chain representation.

What changed

New wstETH deposits, borrowing, and collateral enablement were disabled on the Plasma Aave market.

What did not change

The payload did not freeze the separate wrsETH reserve, alter Lido's Ethereum staking or withdrawal contracts, or establish that existing Plasma wstETH positions had migrated.

Confirmed

• Proposal 410 executed on November 18, 2025.
• The freeze prevents new deposits, borrows, and collateral enablement for wstETH on Plasma.
• The proposal attributed the change to replacement of a wstETH cross-chain deployment that was not considered future-proof.
• The proposal reported approximately 0.044 wstETH on Aave Plasma when published.

Still open

• The migration path and timing for existing Plasma wstETH holders.
• The new token contract, CCIP configuration, deployed controls, and Aave re-onboarding path.
• Whether any client or approved position used the frozen reserve.
• Live exit liquidity and pricing for the deprecated representation.

What it means for an advisor

• Update the Aave memo to treat the Plasma wstETH reserve as unavailable for new exposure.
• Review any existing position for exit and migration mechanics without assuming the replacement representation is equivalent or approved.
• Reassess the bridge, token, oracle, and freeze-control map before any future re-onboarding.

Previous interpretation

On October 19, Aave executed wstETH and wrsETH onboarding on Plasma, with wstETH enabled as borrowable collateral under a high-efficiency E-mode.