LlamaRisk Proposes Aave Cap Cuts Before Markets Reopen
LlamaRisk has proposed cutting borrowing caps on Aave ahead of markets reopening, removing roughly $3.7 billion of unused borrowing capacity on V3 and $130 million on V4. An existing freeze already blocks new loans. The proposal signals tighter risk controls at the largest DeFi lender, which traders may read as cautionary for DeFi leverage and lending activity.