WuBlockchain
Aave froze all DAO-operated V3 and V4 markets after a wallet linked to the Binance exploiter deposited about $60 million in USDT and borrowed 19,762 WETH, worth roughly $44.6 million. The activity on Aave V3 Ethereum Core took place about 40 minutes before the first freeze on October 29.
Why it matters
The precautionary freeze spans 175 V3 reserves across 16 networks and 117 V4 reserves across four networks. New deposits and borrowing are paused, but users can still withdraw assets and repay existing loans.
Market impact
The position remains over-collateralized and is the wallet’s only position on Aave. Aave said its contracts were unaffected and that it aims to lift the freeze as soon as possible. The pause limits new exposure while the situation is assessed, but leaves existing user withdrawals and repayments available.
Source: [Binance Hot Wallet Exploit: Aave's Response](https://governance.aave.com/t/binance-hot-wallet-exploit-aaves-response/25954)
Frequently asked questions
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What activity prompted Aave to freeze its V3 and V4 markets?
A wallet linked to the Binance exploiter deposited about $60 million in USDT into Aave V3 Ethereum Core and borrowed 19,762 WETH, worth roughly $44.6 million.
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Can Aave users still withdraw or repay during the freeze?
Yes. New deposits and borrowing are paused, but users can still withdraw assets and repay existing loans.
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How many Aave reserves are covered by the freeze?
The freeze covers 175 V3 reserves across 16 networks and 117 V4 reserves across four networks.
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What is the status of the exploiter-linked position?
The position remains over-collateralized and is the wallet’s only position on Aave.
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Did Aave say its contracts were affected?
No. Aave said its contracts were unaffected and that it aims to lift the freeze as soon as possible.
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