# Aave Freezes Ethereum tBTC Reserve to Limit Exposure During Minting Pause

By Simon Yoon

Canonical URL: https://www.tokenpost.com/news/technology/45448
Published: 2026-10-31T11:14:29.000Z
Updated: 2026-10-31T11:14:29.000Z
Section: Technology

> The move blocks new deposits and tBTC-backed borrowing in Ethereum Core, while existing users can still repay, withdraw and face liquidations under unchanged rules.

Aave froze its tBTC reserve in the Ethereum Core market to prevent its exposure from increasing during Threshold Network’s pause in tBTC minting and redemptions.

The change blocks new deposits to that reserve and new borrowing backed by tBTC. Users with existing positions can still repay debt and withdraw assets, and liquidations remain governed by the market’s current rules. The liquidation threshold is unchanged, and the freeze itself does not trigger liquidations.

The move follows Threshold Network’s [suspension of new BTC-to-tBTC issuance and redemption requests](<https://www.tokenpost.com/news/technology/45250>) during security maintenance. That pause does not prevent users from holding, transferring or using tBTC already in circulation.

Aave’s tBTC reserves on Base and Arbitrum had already been frozen through an asset deprecation process. The new action applies only to the tBTC reserve in Ethereum Core and does not change other reserves or markets.



## Links in this article

- [suspension of new BTC-to-tBTC issuance and redemption requests](https://www.tokenpost.com/news/technology/45250)
