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Aave Guardian Multisig Freezes WETH in Lending Market

DeFiLlama founder 0xngmi said no WETH positions currently face imminent liquidation risk, though Aave V3 mainnet weETH borrowing remains close to liquidation levels as of April 19.

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Summary

After Aave’s guardian multisig froze WETH in the lending market on April 19, DeFiLlama founder 0xngmi said no WETH positions currently face imminent liquidation risk. He added that while weETH positions on Aave are very close to liquidation prices, those loans are collateralized by ETH. As of April 19, the Aave V3 mainnet weETH borrowing rate was about 1.00%.

Terms & Concepts
  • Aave: A decentralized lending protocol that lets users supply crypto assets as collateral and borrow against them on blockchain-based markets.
  • WETH: Wrapped Ether, an ERC-20 version of ETH commonly used in decentralized finance applications and lending markets.
  • Liquidation: A process in DeFi lending where collateral can be sold when a borrower’s position falls below required safety thresholds.