Aave keeps zero borrowing power on key stablecoins as TVL falls $1 billion
CIE News ·
Based on reporting by CryptoSlate; not yet independently confirmed.
Aave maintained a 0% loan-to-value ratio for USDT, USDC, and USDT0 following an exploiter deposit, with its TVL dropping about $1 billion alongside a $713 million decline for Lido, according to CryptoSlate.
Aave set loan-to-value ratios to zero for Tether (USDT), USD Coin (USDC), and USDT0 after an exploiter-linked address interacted with the protocol, CryptoSlate reported. Between October 27 and November 3, 2026, Aave's total value locked dropped by about $1 billion, while Lido experienced a $713 million decline.
According to Aave risk service provider LlamaRisk, a wallet linked to the October 29 Binance security breach supplied 60 million USDT to Aave and borrowed 19,762 Wrapped Ethereum (WETH). Guardians responded by freezing 175 Aave V3 reserves and 117 V4 reserves, halting new deposits and borrowing while keeping repayments, withdrawals, and liquidations active. Large withdrawals subsequently drove utilization in certain reserves to between 92% and 100%.
Frozen reserves reopened by October 31, and LlamaRisk noted that interest-rate curves returned to pre-incident levels on November 1. Non-stablecoin collateral parameters were restored on November 2, but USDT, USDC, and USDT0 retained zero collateral borrowing power in the affected configurations.
Key facts
- 0% LTV for USDT and USDC
- $1B Aave TVL drop
- $713M Lido TVL drop
- 60M USDT supplied by exploiter
Read the original at CryptoSlate