Aave borrowers paid up to 36% APR as freeze blocked fresh collateral

Borrowers in Aave's frozen reserves continued paying interest rates as high as 36% APR while the freeze prevented them from depositing fresh collateral, including extra collateral they might normally add to protect a loan. Suppliers could still request withdrawals where tokens were available, which could push borrowing costs even higher even though new borrowing in those reserves was blocked. Traders should watch Aave's frozen markets for liquidation risk and rising rates that could pressure positions and the protocol's reputation.