Narrowing price cushions leave Bitcoin loans vulnerable to 4.7% price dips as Aave weighs higher leverage

Narrowing price cushions leave Bitcoin loans vulnerable to 4.7% price dips as Aave weighs higher leverage

Aave’s Bitcoin LTV proposal would raise WBTC and cbBTC limits to 81%, narrowing the maximum-borrowing price cushion from 6.4% to 4.7%.

Aave Proposal Seeks Higher Borrowing Limits For ETH And Bitcoin Collateral

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 […]