LlamaRisk Proposes to Lower Borrowing Limits for Aave V3 and V4, Removing Approximately $3.8 Billion in Unused Quotas

LlamaRisk has proposed to lower the borrowing limits for 27 reserve loans in Aave V3 and 6 credit line withdrawal limits in Aave V4, with the new limits set at approximately 1.02 times the borrowing amounts before the attack. This adjustment will remove approximately $3.7 billion in unused limits from Aave V3 and about $130 million from Aave V4. For example, in V3 Core, the borrowing limit for WETH will decrease from 2,400,000 to 1,790,000, while the borrowing limits for USDT and USDC will be reduced to 25,600,000,000 and 22,700,000,000, respectively. LlamaRisk pointed out that the attackers still hold a large amount of ETH, stablecoins, and governance tokens, which could allow them to quickly establish large positions once the market thaws.

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