Aave contributors announced on October 31 that the protocol had frozen additional tBTC supply and new borrowing in its Ethereum Core market. The restriction followed Threshold’s temporary suspension of tBTC minting and redemption functions and does not affect unrelated Aave lending pools. The pause does not mean that tBTC has lost its Bitcoin backing, nor does it change liquidation thresholds: existing accounts remain subject to normal health requirements and may still be liquidated if their positions move unfavourably. Users can continue repaying debt and withdrawing collateral subject to the market’s normal rules, while new risk exposure is limited. The restoration of Threshold’s functions, tBTC liquidity conditions and any governance proposal to amend market parameters remain under watch.
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