LlamaRisk Proposes Aave Cap Cuts Before Markets Reopen

Crypto Insight Summary: The plan would remove about $3.7 billion of unused borrowing capacity on V3 and $130 million on V4, while the existing freeze still blocks new loans. Crypto Insight Analysis: Direction: Bullish AAVE Impact: Minor Impact Horizon: Short-term (1-3 days) Reasoning: Aave cap cuts may reduce exposure from the loan freeze and support risk controls, but the impact is protocol-specific.