LlamaRisk proposes a narrower collateral role for Aave V3 Core
The current proposal covers $1.33 billion of collateral backing $1.03 billion of debt and outlines a gradual transition.
LlamaRisk’s November 10 governance proposal would concentrate Aave V3 Core on established, liquid collateral while using Aave V4 for a broader range of risk exposures. Its November 9 snapshot lists $1.33 billion in collateral backing $1.03 billion in debt.
The proposed first step freezes reserves in scope and stops new borrowing against them while keeping existing positions open. Issuer engagement and natural unwinding would follow. Further controls would be gradual and conditional on exposure failing to decline.
This remains a proposal, not evidence of an executed migration. For lending builders, the architectural issue is how pooled liquidity absorbs collateral dependencies and how separate risk limits can make that exposure more explicit.