Aave restricts new tBTC exposure. Repayments and withdrawals continue.

Aave’s guardian froze tBTC on its V3 Ethereum Core market at 10:01 UTC on 31 October, according to risk provider LlamaRisk. The precaution follows Threshold’s pause of tBTC minting and redemption. It stops new tBTC deposits and additional borrowing power from that asset.

LlamaRisk says users can still repay and withdraw, while liquidations and borrowing against other collateral continue. The freeze leaves tBTC’s liquidation threshold unchanged, so the restriction itself does not alter existing position health factors or make a position liquidatable.

This is a restriction on one reserve, not a pause of the whole Aave market. The tBTC reserves on Base and Arbitrum were already frozen in earlier deprecation rounds. Ethereum Core was the remaining location where it could support new borrowing.

LlamaRisk says it will monitor Threshold’s updates, positions and secondary-market liquidity before proposing restorative measures. Its notice supplies no confirmed reopening time or finding of a tBTC exploit. We are reporting the precaution, not treating it as proof of a loss.