Aave has reinstated loan-to-value settings for non-stablecoin assets that had remained on its keep list after the Binance hot wallet incident, saying the move follows the resumption of Binance withdrawals and the stabilization of the outflow spike that came with them.

According to an update on Aave governance, the protocol’s guardians executed the relevant changes on Aave V3 at 15:55 UTC and on Aave V4 between 16:22 and 16:24 UTC. Aave said each restored reserve has been returned to the same collateral configuration it held before the emergency freeze.

Which assets had collateral settings restored

On Aave V3, the restored reserves are WPOL on Polygon, WAVAX and sAVAX on Avalanche, and XAUt on Ethereum Core alongside XAUt0 on Plasma. WPOL returned to a 68% base LTV with the MATIC-correlated E-Mode, WAVAX to a 68% base LTV with the AVAX-correlated E-Mode, and sAVAX to a 50% base LTV with the same AVAX-correlated E-Mode.

For the tokenized gold assets, Aave noted that XAUt on Ethereum Core and XAUt0 on Plasma were already configured with a base LTV of zero before the incident. Their use as collateral is limited to their respective E-Mode categories: XAUt/USDC, USDT and GHO on Ethereum Core, and XAUt/USDT on Plasma.

V4 reserves returned to pre-freeze collateral factors

On Aave V4, the protocol restored pre-freeze collateral factors for four reserves. Those are XAUt on Ethereum at 75%, PAXG on Ethereum at 75%, WAVAX on Avalanche at 73%, and sAVAX in the Avalanche-correlated market at 95%.

Aave also explained how the restoration applies to users whose positions had been shifted to a collateral factor of zero during what it described as the second wave of changes. Those positions will move back to the restored setup on their next borrow, collateral withdrawal, or collateral toggle. Positions that never left their original configuration are unchanged.

Earlier temporary rate-curve changes have also been reversed

Separately, Aave said temporary Slope2 reductions introduced on 30 October were rolled back on 1 November between 17:57 and 19:51 UTC.

The reversals covered the affected stablecoin reserves on both Aave V3 and Aave V4, as well as WETH on the Aave V4 Ethereum Core Hub. Those markets have been returned to the interest rate curves they used before the incident.

Stablecoins remain excluded as monitoring continues

Aave has not yet restored collateral usage for USDT, USDC and USDT0, including bridged versions. On V3, those assets remain at LTV 0, including within E-Mode. On V4, they continue to carry a collateral factor of 0.

The protocol said restoring LTV for those stablecoins is the next step it may consider. For now, Aave said it is still watching the exploiter’s wallets, the reserves affected by the freeze, and the Chainlink price feeds the protocol relies on.

Source: governance.aave.com