Aave Restores WETH LTVs to Pre-Incident Levels as rsETH Recovery Enters Next Phase!

Aave has restored WETH loan-to-value ratios across all affected networks, reopening borrowing against WETH collateral — including through collateral and debt swap functions — as part of the protocol's ongoing rsETH technical recovery plan. Aave founder Stani Kulechov confirmed the move marks the next phase of that recovery.

The update covers Aave V3 deployments on Ethereum Core, Ethereum Prime, Arbitrum, Base, Mantle, and Linea — a broad rollout that signals the incident's most disruptive constraints are now behind the protocol.

Restoring LTVs to pre-incident levels is a meaningful milestone: it returns capital efficiency to users who had been locked out of full borrowing capacity, and it signals that the risk parameters the Aave community temporarily tightened are no longer warranted by the underlying conditions.