THE BLOCK: Aave has unfrozen all markets across its V3 and V4 protocols following the Binance incident, saying its smart contracts were unaffected and user positions remained fully collateralized.
As a continued precaution, the protocol has temporarily set loan-to-value ratios to zero for USDT, USDC, USDT0, POL, WAVAX, sAVAX, XAUT, PAXG, and OP, preventing them from being used as collateral for new borrows.