Aave community launches proposal to reduce WBTC’s loan-to-value ratio to 0

PANews reported on September 20 that according to the Aave governance forum, LlamaRisk released a proposal on September 18, suggesting that the parameters of WBTC on the Aave platform be adjusted due to the potential risks brought about by BitGo's custody transformation of WBTC. The proposal suggests reducing WBTC's loan-to-value ratio (LTV) to 0 and lowering the supply and borrowing limits to cope with the possible risk of custody changes and ensure the stability of existing users. This adjustment is intended to prevent risks rather than immediate threats, and Aave will take gradual measures so that these adjustments can be reversed after trust is restored.