• The LlamaRisk team proposed revising the list of collateral assets on the Aave V3 Core main market to reduce risks for liquidity providers.
• The initiative covers $1.33 billion in assets that back roughly $1.03 billion in debt positions.
• The proposal calls for freezing reserves and gradually migrating positions without immediate forced liquidations.

The LlamaRisk risk management team published a proposal to restructure the Aave V3 Ethereum Core market. The initiative would limit the use of a number of crypto assets as lending collateral to concentrate liquidity in battle-tested assets and reduce risks for the DeFi protocol.

As of November 9, 2026, the changes cover…