LlamaRisk Proposes Migrating $1.52 Billion in Collateral Assets Out of V3 Core Market

Odaily reports: Aave founder Stani posted on X that Aave protocol risk management firm LlamaRisk has proposed adjusting the asset structure of Aave's largest lending market, V3 Core, to shift focus toward highly liquid blue-chip collateral assets. According to the proposal, collateral assets worth approximately $1.52 billion, which support about $1.17 billion in debt, may be migrated out of the V3 Core market.

The adjustment primarily involves restaking assets, assets related to leveraged wrapping strategies, assets from issuers whose operational and security resources do not meet Aave's risk standards, and reserve assets with low market demand that are no longer worth maintaining. Some affected assets may be migrated to Aave V4 isolated markets with more refined risk control mechanisms. The proposal is currently still in the governance discussion stage and in communication with asset issuers, and has not yet been formally implemented.