Aave Proposal Seeks Higher Borrowing Limits For ETH And Bitcoin Collateral

A new Aave ARFC proposal aims to increase capital efficiency by raising loan-to-value (LTV) and liquidation threshold parameters for major assets, including WETH, WBTC, cbBTC, wstETH, and weETH. Specifically, the proposal suggests increasing WETH LTV to 81% and its liquidation threshold to 84% across Ethereum, Base, and Arbitrum. These adjustments are currently under governance discussion and are not yet active, as the protocol weighs the benefits of increased borrowing power against the reduced margin for error.