Dmitri, founder of StakeWise, asked Aave governance to hold a separate vote on freezing osETH, the protocol’s staking token, challenging its inclusion in a broader collateral overhaul. LlamaRisk valued osETH used as collateral at $279.4 million and estimated that it supported $256.6 million in WETH debt, with leverage reaching about 14 times. The initial freeze would set the borrowing limit to zero in E-Mode, while existing borrowers could repay or migrate to other collateral, including wstETH, weETH, cbETH and WETH. LlamaRisk favors the natural unwinding of positions, rebates and, as a last resort, a gradual increase in the WETH base borrowing rate, but did not specify osETH’s allocation or the size of its premium in Aave V4.
Source: Read the original article
