LlamaRisk proposes refocusing Aave V3 Core on blue-chip collateral, potentially moving $1.52B to v4

LlamaRisk, an Aave Protocol Risk Manager, has proposed repositioning Aave V3 Core, the protocol's largest market, to accept only liquid, blue-chip collateral. The plan would remove restaking assets, leveraged wrapping strategies, issuers failing Aave's risk standards, and low-demand reserves requiring maintenance. The change could move $1.52B in collateral backing $1.17B in debt out of V3 Core. Some affected assets may shift to isolated Aave V4 markets with granular risk controls. The proposal remains subject to governance discussions and issuer engagement, with continuous risk assessment continuing across deployments.

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