Aave blocked new deposits and borrowing against 1,760 tBTC worth about $136.6 million after Threshold Network suspended redemptions and minting of its tokenized Bitcoin. LlamaRisk recommended the decision, and Aave’s governance applied it through the guardian multisig on its Ethereum V3 Core market. Threshold says reserves remain sufficient, with roughly 4,320 BTC held against 4,185 tBTC in circulation, and maintains that no funds were lost, but it has not disclosed the security issue or set a reopening date. Gauntlet also reduced its exposure by withdrawing 65,000 USDC from a market backed by tBTC, as the suspension threatens secondary-market liquidity and lenders’ ability to exit positions.
Source: Read the original article


