# Aave freezes the wstETH reserve on Plasma

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

- URL: https://riadefi.com/on-chain/2025-11-18-aave-v3-plasma-wsteth-freeze/
- Type: Closure or deprecation
- Stage: Executed
- Evidence: confirmed
- Materiality: material
- Event date: 2025-11-18
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Advisor-relevant: yes
- Affects: Aave v3 (protocol)

## 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.

## Sources

1. [Freeze wstETH Plasma](https://app.aave.com/governance/v3/proposal/?proposalId=410) · Aave Governance V3 · 2025-11-14


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.