Aave’s Risk Manager Wants a Borrowing Speed Limit After Binance Hackers Took $44.6 Million
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LlamaRisk, the risk manager for Aave, plans to impose time-based caps on how much can be borrowed from the lending protocol, CEO Adam Sadowski said, six days after a wallet linked to the Binance hack borrowed $44.6 million in ETH from Aave. The proposed borrowing speed limit is a direct response to that large single draw, which showed how quickly a single borrower can pull liquidity from the protocol. The change would throttle loan volumes over set periods rather than relying only on existing collateral and supply caps. It matters because Aave is one of the largest DeFi lenders, and the Binance-linked wallet’s $44.6 million ETH loan highlighted concentration risk from large borrowers. What to watch next is how LlamaRisk calibrates the caps and whether Aave governance approves them.
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Named in this story
Aave (AAVE), LlamaRisk, Binance, Adam Sadowski, ETH (ETH)
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