Aave reopens markets, but nine assets retain zero LTV: what borrowers should check

What the reopening reports actually say

Odaily published its account at 22:02 SGT on October 30. It says Aave lifted the precautionary freeze across its V3 and V4 markets. The report attributes to Aave the statement that new deposits and borrowing had been paused, while withdrawals and repayments continued during the freeze. Odaily's report gives the remaining restrictions.

The assets whose LTV temporarily remains at zero are USDT, USDC, USDT0, POL, WAVAX, sAVAX, XAUT, PAXG and OP. Both reports say these assets cannot serve as collateral for new borrowing while that setting remains in place. Keep the token names precise when checking a position: the report lists USDT and USDT0 separately, and WAVAX and sAVAX separately.

The publications also attribute to Aave the statements that its contracts were unaffected by the incident and that positions remained fully collateralized. Those statements concern Aave's reported condition. They do not establish the outcome of the suspected Binance incident, the status of a particular exchange withdrawal, or the recovery of any missing exchange assets.

PANews and Odaily both refer to Aave's statement. They provide two readable accounts of that statement, rather than two independent investigations of market balances or contract state. We use Aave's own help documentation for the borrowing and withdrawal mechanics below. We have not inspected every affected market's current on-chain settings, and the reports provide no firm date for restoring the nine assets' LTV.

A reopened market can still limit a new loan

For someone returning to the app after a freeze, “reopened” can sound like permission to resume the same transaction they had planned earlier. The remaining zero-LTV condition requires another check. Read the asset's borrowing parameters in the specific market where the funds sit before committing more collateral to a loan plan.

Aave's borrowing guide tells users to review the LTV ratio, liquidation threshold and health factor before confirming a borrow. It also says the dashboard's borrowing table shows available amounts and interest rates. These are separate pieces of information: an available token in a borrowing table does not, by itself, establish that a particular supplied asset can support the proposed amount. Aave explains the borrowing review.

The practical consequence of the reported restriction is narrow. If your plan depends on one of the nine assets supplying new borrowing capacity, do not treat the reopening headline as confirmation that the plan works. Inspect the permitted amount for your wallet and market. A failed expectation about collateral capacity can leave a planned repayment, withdrawal or transfer unfinished.

For a supplier without a loan, begin with the supplied balance and the available withdrawal amount. For a borrower, inspect the existing debt as well. The same asset can appear in two users' dashboards while the action each user can take differs because one position already supports a loan.

Avoid importing settings from another chain, another account or a screenshot posted before the update. The reports describe a broad reopening and a list of restricted assets; they do not supply a wallet-specific transaction preview. Your check should end with the parameters of the actual transaction you intend to sign.

Zero LTV and liquidation need different checks

A zero LTV headline does not provide enough information to calculate the health of an existing loan. Aave's documentation calculates health factor from total collateral value multiplied by the weighted average liquidation threshold, divided by total borrowed value. The formula uses the liquidation threshold. Readers should therefore check that parameter alongside LTV rather than substitute one for the other. Aave's health-factor documentation gives the formula.

The documentation says a health factor below 1 makes a position eligible for liquidation. It also explains that collateral and borrowed-asset values can move, changing the health factor. The reopening reports do not provide a new liquidation threshold for every affected asset or a health factor for your position. An inference that all existing loans must be liquidated would go beyond these sources.

Aave's own numerical example helps show the calculation. It uses $10,000 of ETH collateral, an 80% liquidation threshold and $6,000 borrowed in GHO. Multiplying $10,000 by 0.80 and dividing by $6,000 gives a health factor of approximately 1.333. These are the documentation's example inputs, not current terms for any of the nine restricted assets.

For an existing borrower, save the displayed collateral balance, debt balance, liquidation threshold and health factor together. If you intend to repay part of a loan, compare the preview with the current position. If you intend to withdraw collateral, review the projected health factor after the withdrawal before approving it.

Aave's guide identifies adding collateral and repaying debt as ways to improve health factor. For an affected asset, first check whether the proposed collateral action is permitted and how the app treats it under the remaining restriction. Do not assume that depositing more of an asset with zero LTV creates the new borrowing capacity you wanted.

Withdrawals still depend on the position and pool

The reports say withdrawals continued during the precautionary freeze. That statement does not mean every user could withdraw every supplied token in full, regardless of debt or available liquidity. Aave's withdrawal guide says withdrawals require sufficient liquidity in the pool; suppliers can withdraw assets available there that are not currently borrowed. Read Aave's withdrawal conditions.

For a position whose supplied tokens support an active loan, the same guide says users may need to repay some debt or supply additional collateral before withdrawing. It directs users to monitor their health factor. The limit is connected to the position being changed, so a market-wide reopening notice cannot replace this review.

Start by opening the supplied asset in the existing dashboard. Check the amount shown as available to withdraw and whether the asset is serving as collateral. Then compare the intended withdrawal with the debt still outstanding. If the interface proposes a smaller amount, preserve the displayed reason before trying a different transaction.

Aave's guide also distinguishes withdrawing the underlying token from withdrawing a network's base token, which can involve a wrapped-token gateway. If the preview includes an approval or an extra action, read what it authorizes. The reopening reports do not establish that a request sent through an unrelated website is part of Aave's withdrawal process.

Keep the exchange incident separate from your Aave position

An Aave position and an exchange transfer require different records. For Aave, the useful record contains the network, market, supplied token, borrowed token and transaction details. For a pending exchange transfer, keep its network, destination, amount and displayed status. Matching those records can help you identify which step of your own transfer needs attention.

If your Binance withdrawal is still marked pending, open that withdrawal in your existing account and save the asset, selected network, destination, amount and displayed status. If a transaction identifier is shown, keep it with that record and compare it with the receiving wallet's record. Check the destination Aave market separately before planning a collateral deposit or repayment. If the records do not explain the delay, ask through Binance's official support channel about that specific withdrawal.

For broader trading context, our liquidations board and funding-rates board provide separate market views. Neither replaces the health factor or permitted withdrawal amount in an Aave position.

Treat unsolicited “Binance compensation” messages and links as a reason to stop before signing anything. Open the official service through your existing trusted route and check its own communication channels. Do not send funds, disclose a recovery phrase or approve a token request to collect a payment described only in a direct message.

Quick answers before the next transaction

Can the nine assets support new borrowing now?

The opened reports say their LTV temporarily remains at zero and they cannot be collateral for new borrowing. Check the specific market again before acting. The sources reviewed here do not give a restoration deadline or establish that a later parameter change has already taken effect.

Does zero LTV prove my existing loan is being liquidated?

Assess the existing loan with its displayed health factor and liquidation threshold. Aave's documentation places the liquidation condition below a health factor of 1. The reports about zero LTV do not provide enough position-level information to conclude that your loan has met that condition.

What should I check if I want to withdraw supplied tokens?

Review available pool liquidity, whether the tokens support outstanding debt and the transaction's effect on health factor. Aave's withdrawal documentation describes those conditions. Preserve the preview and the resulting transaction record so that a later status question refers to the action you actually submitted.