Aave V3 reserve freeze has been lifted, but borrowing against USDT and other assets is temporarily suspended.

TechFlow reports. On October 31, according to an update posted by Aave risk services provider LlamaRisk on the governance forum, Aave is unfreezing markets frozen due to the Binance hack in four stages. All Aave V3 reserves frozen in this incident have been completely unfrozen, with the loan-to-value (LTV) ratio temporarily maintained at 0.

Subsequent stages will restore LTV for most V3 reserves and unfreeze Aave V4 reserves. Assets held by hacker address clusters, such as USDT, USDC, USDT0, POL, XAUt, and PAXG, will continue to have an LTV of 0 on V3 and a collateral factor of 0 on V4, restricting only new borrowing capacity. Normal deposits, withdrawals, borrowing, and repayments remain unaffected.

Additionally, LlamaRisk has lowered the caps on major lending paths, reducing idle borrowing capacity by approximately $3.7 billion for V3 and $130 million for V4.