# LlamaRisk Plans Lower Aave Caps Ahead of Reopening

By Simon Yoon

Canonical URL: https://www.tokenpost.com/news/technology/44549
Published: 2026-10-30T10:42:39.000Z
Updated: 2026-10-30T10:42:39.000Z
Section: Technology

> The proposed changes would cut about $3.7 billion in unused borrowing capacity on Aave V3 and $130 million on V4.

LlamaRisk plans to use Aave’s Risk Steward mechanism to lower borrowing limits across V3 and V4 before markets reopen in stages, citing the risk that the party it identifies as responsible for the Binance theft could use remaining capacity to build a large position.

The proposed changes would reduce unused borrowing capacity by about $3.7 billion on V3 and $130 million on V4. They target markets where borrowing before the incident exceeded $10 million and the remaining room under the cap also topped $10 million.

For each targeted market, the new limit would be set 2% above whichever is higher: borrowing before the incident or current borrowing. On Aave V3 Core, the Wrapped Ether (WETH) cap would fall from 2.4 million tokens to 1.79 million. The Tether (USDT) cap would decline from 3.09 billion tokens to 2.56 billion.

LlamaRisk’s governance post says the attacker had already borrowed 19,762 WETH from V3 Core and still held large amounts of Ether, stablecoins and governance tokens. Aave V3 and V4 reserves had been frozen after the incident. As borrowing demand recovers after reopening, the caps can be raised through the regular process.