Aave’s guardians began reopening markets with collateral restrictions after the October 29 freeze.

What happened

LlamaRisk reported that Aave’s guardians froze reserves on October 29, 2026, after an address associated with the Binance incident borrowed WETH.

What changed

LlamaRisk’s October 30 update confirmed that guardians had unfrozen the affected Aave V3 reserves while retaining zero loan-to-value ratios.

What did not change

LlamaRisk stated that users could withdraw and repay during the freeze, while liquidators could continue liquidations. Existing Aave V3 liquidation thresholds remained unchanged.

Confirmed

• LlamaRisk reported that guardians froze 175 Aave V3 reserves across 16 networks between 21:42 and 23:04 UTC on October 29.
• LlamaRisk reported that an associated address supplied 60M USDT and borrowed 19,762 WETH before the freeze.
• LlamaRisk reported executing temporary interest-rate reductions and borrowing-limit reductions on October 30.
• LlamaRisk attributed about $3.7B of removed unused Aave V3 borrowing capacity to the reductions.
• LlamaRisk stated that USDT, USDC, USDT0, POL, WAVAX, sAVAX, XAUt, PAXG and OP would retain zero loan-to-value ratios.
• LlamaRisk stated that these restrictions also covered the listed assets’ bridged and wrapped versions and Aave V3 E-Mode.

Still open

• LlamaRisk’s update did not confirm completion of every reopening stage.
• The update stated that GHO borrowing-limit reductions on Ethereum Core and Prime remained queued with the GHO Stewards.
• LlamaRisk’s summary targeted 10.00% APR at full utilization, but the separate parameter notice listed higher rates for several reserves.
• Binance’s total losses, recovery and incident cause require separate primary confirmation.

What it means for an advisor

• Ketju should reopen the Aave memo to verify current GHO borrowing limits, supplier liquidity and restrictions affecting collateral.
• Ketju’s approval covers Ethereum GHO and sGHO, so advisors should verify those exposures separately from other Aave markets.
• Advisors should verify current borrowing power before relying on affected collateral to support additional debt.