A Bitcoin price drop of about 4.7% could trigger liquidation for borrowers who use Aave’s proposed maximum borrowing limit, assuming their debt stays unchanged.
The proposal would raise borrowing limits for WBTC and cbBTC on Ethereum Core from $73 to $81 per $100 of collateral. At maximum borrowing, the simplified price cushion would shrink from 6.4% to 4.7%. The higher limits still require governance approval and implementation.
https://cryptoslate.com/narrowing-price-cushions-leave-bitcoin-loans-vulnerable-to-4-7-price-dips-as-aave-weighs-higher-leverage/
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