{"id":145807,"date":"2026-09-22T20:30:39","date_gmt":"2026-09-22T20:30:39","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=145807"},"modified":"2026-09-22T20:30:39","modified_gmt":"2026-09-22T20:30:39","slug":"aave-proposal-seeks-higher-borrowing-limits-for-eth-and-bitcoin-collateral","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=145807","title":{"rendered":"Aave Proposal Seeks Higher Borrowing Limits For ETH And Bitcoin Collateral"},"content":{"rendered":"<div>\n<h2>TL;DR<\/h2>\n<ul>\n<li>An Aave ARFC proposes higher collateral efficiency for ETH- and Bitcoin-linked assets.<\/li>\n<li>The proposal would raise WETH LTV to 81% and liquidation threshold to 84%.<\/li>\n<li>The parameters are still under governance discussion and are not yet live.<\/li>\n<\/ul>\n<p>Aave governance is considering whether borrowers should be able to extract more capital against some of the protocol\u2019s largest collateral assets.<\/p>\n<p>A new ARFC proposes higher loan-to-value and <a href=\"https:\/\/bitcoinist.com\/glossary\/liquidation\/\">liquidation<\/a>-threshold parameters across assets including WETH, WBTC, cbBTC, wstETH and weETH.<\/p>\n<h2>WETH Could Move To 81% LTV<\/h2>\n<p>One of the headline changes would take WETH to an 81% loan-to-value ratio with an 84% liquidation threshold.<\/p>\n<p>In practical terms, that would allow users to borrow more against the same amount of collateral before reaching the point where liquidation risk becomes critical.<\/p>\n<p>The proposal covers deployments across <a href=\"https:\/\/bitcoinist.com\/glossary\/ethereum\/\">Ethereum<\/a>, Base and Arbitrum and is framed as a capital-efficiency adjustment based on current risk analysis.<\/p>\n<h2>Higher Efficiency Also Means Less Margin For Error<\/h2>\n<p>More borrowing power is attractive to users, but collateral settings are among the most sensitive variables in a lending protocol.<\/p>\n<p>Raising LTV increases capital efficiency while narrowing the distance between maximum borrowing and liquidation.<\/p>\n<p>That is why the proposal is moving through Aave\u2019s ARFC process rather than being applied immediately.<\/p>\n<p>The numbers being discussed are proposed parameters, not live settings.<\/p>\n<p>If governance eventually approves them, the change would make some of Aave\u2019s most established collateral assets more efficient for borrowers. Until then, existing market parameters remain in force.<\/p>\n<p><em>This article was written by the News Desk and edited by <a href=\"https:\/\/bitcoinist.com\/author\/samuelrae\/\">Samuel Rae<\/a>.<\/em><\/p>\n<p style=\"display:none;\">Source: <a href=\"https:\/\/governance.aave.com\/t\/arfc-revision-of-eth-btc-collateral-efficiency-on-aave\/25649\" rel=\"nofollow noopener\" target=\"_blank\">Primary Source<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>TL;DR An Aave ARFC proposes higher collateral efficiency for ETH- and Bitcoin-linked assets. The proposal would raise WETH LTV to 81% and liquidation threshold to 84%. The parameters are still under governance discussion and are not yet live. Aave governance is considering whether borrowers should be able to extract more capital against some of the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-145807","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/145807","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=145807"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/145807\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=145807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=145807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=145807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}