The plan pairs timed borrowing buffers with a steward-run route for large clients. Parameters remain provisional and governance votes are still ahead.

Affected reserves would be frozen first, leaving existing loans open while borrowers switch collateral or migrate to V4.

Borrowers can request custom loan durations, with solvers posting capital to absorb differences between fixed quotes and floating funding costs.

Aave’s $119.9 million Ethereum Core tBTC reserve remains frozen while Threshold waits for more operators to reconnect.

The deal includes Avon's lending protocols and onchain order book, but Aave Labs has not named a first market or launch date.

Bitcoin redemptions will resume once enough operators return, while Aave’s $123.2 million Ethereum Core tBTC reserve remains frozen.

LlamaRisk has proposed a 300 BTC collateral cap, but activating the market would still require a separate onchain governance vote.

Starloop borrows USDC against tokenized shares, adding liquidation risk to a strategy operating within Aave’s 37,000-token collateral cap.

Threshold also disclosed a separate incident that drained about 0.5 ETH from an operator’s fee-paying account. Aave’s frozen Ethereum Core reserve holds about $136.3 million of tBTC.

A hypothetical $10,000 collateral position loses $1,500 of borrowing headroom without changing its 1.33 health factor.