Aave proposes isolating 15 E-Modes and de-isolating three

What happened

LlamaRisk proposed a common isolation rule: isolate E-Modes permitting an asset to be borrowed when its general borrowing market is disabled.

What changed

Fifteen categories would exclude outside collateral from new borrowing power; three categories would restore outside collateral's base-market LTV.

What did not change

The proposal says isolation preserves liquidation thresholds and existing health factors. No approved payload or executed parameter change is established.

Confirmed

• The specification identifies 15 categories for isolation and three for de-isolation.
• The proposed restriction affects new borrowing power and position restructuring.
• The ARFC describes Snapshot and an AIP as subsequent steps.

Still open

• Final approval, payload sequencing and execution.
• Which actual positions would face borrowing or collateral-withdrawal constraints at execution.

What it means for an advisor

• Monitor the affected E-Mode categories against the aave-v3 collateral and exit documentation.
• Before execution, distinguish reduced borrowing capacity from liquidation risk and document restructuring constraints for any relevant exposure.