Aave Lifts V3 and V4 Market Freeze After Binance Security Alert

Aave restored normal operations across all its V3 and V4 markets after lifting a precautionary freeze prompted by early information about a security incident involving Binance.

Aave had paused new deposits and borrowing after receiving an initial alert. Withdrawals and loan repayments remained available, allowing users to access assets and reduce existing debt during the restriction.

Aave said its smart contracts were unaffected and user positions remained fully collateralized throughout the episode.

Some restrictions remain. Loan-to-value (LTV) settings for USDT, USDC, USDT0, POL, WAVAX, sAVAX, XAUT, PAXG and OP will stay at zero as a continuing precaution. Those assets cannot be used as collateral for new borrowing while the settings remain in place.

The reopening applies across every market in both versions. It restores ordinary deposit and borrowing activity, while the separate zero-LTV controls continue to restrict use of the nine assets for new borrowing.