LlamaRisk, an Aave risk manager, has proposed gradually removing approximately $1.33 billion in higher-risk collateral from Aave V3 Core, according to a PANews report citing The Defiant. The proposal would steer the Ethereum lending market toward established, liquid assets while giving existing borrowers time to exit. It was still under discussion and had not been approved when PANews reported it on November 11, 2026, at 08:20 (UTC+8).
As of November 9, the assets proposed for removal supported $1.03 billion in debt. That figure measures borrowing backed by the collateral; it is not protocol revenue or a token valuation.
LlamaRisk argues that Core’s pooled lending rates leave depositors bearing the additional risk of complex collateral without corresponding compensation. The proposed removals include restaking tokens, leveraged wrapped assets, derivatives strategies and custom cross-chain bridges, as well as reserves from under-resourced issuers or with limited demand.