Aave Community Proposes Stripping WBTC
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September 20, 2024
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ChainCatcher News: Aave Community Member LlamaRisk Proposes WBTC Removal
LlamaRisk, a member of the Aave community, has submitted a proposal to remove Wrapped Bitcoin (WBTC) from the platform. The proposal outlines the following:
- Reduce WBTC Loan-to-Value (LTV) to 0 across all V3 instances (Ethereum, Arbitrum, Avalanche, Harmony, Optimism, and Polygon). This would prevent further borrowing against WBTC collateral while not affecting existing user positions.
- Lower supply and borrowing limits to a level 5-10% higher than current utilization. This would limit further risk associated with WBTC, while allowing users flexibility to adjust their positions.
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