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Aave cuts borrowing limits by $3.83B on V3 and V4 to curb risk after Binance theft incident

Protocol Fundamentals
30 Oct 2026, 13:42 WIB
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Aave cuts borrowing limits by $3.83B on V3 and V4 to curb risk after Binance theft incident

LlamaRisk plans to reduce borrowing limits on Aave's V3 and V4 platforms by about $3.83 billion combined to prevent the party linked to the Binance theft from building a large position. The new caps target markets with high borrowing before the incident and set limits 2% above the higher of pre-incident or current borrowing. For example, the Wrapped Ether cap on V3 Core drops from 2.4 million to 1.79 million tokens, and Tether's cap falls from 3.09 billion to 2.56 billion tokens. Aave reserves were frozen after the theft, and borrowing limits may be raised again as demand recovers and markets reopen gradually.

AAVE trades at Rp2.282.847 on Pluang as of Oct 30, 2026 18:05 WIB, down 5.83% in the last day with a market cap of Rp34,92 trillion. The news about LlamaRisk lowering borrowing caps on Aave's platforms adds context to this price movement, as the platform is actively managing risk following the Binance theft. Pluang data also shows a nearly balanced order activity with 51% selling and 49% buying, indicating cautious investor sentiment.

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