LlamaRisk Proposes Borrowing Speed Limits for Aave V3
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LlamaRisk has proposed borrowing speed limits for Aave V3 that pair timed borrowing buffers with a steward-run route for large clients. The parameters remain provisional, with governance votes still ahead. The mechanism would throttle how quickly positions can be drawn, giving the protocol a tool to manage liquidity stress during demand spikes. Large clients would retain a path to faster access through the steward process, though the details of that route are not yet finalized. What to watch next is the final parameter set and the outcome of the governance votes, which will determine whether the limits take effect and how strictly they bind.
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Named in this story
LlamaRisk, Aave V3