According to The Defiant, Aave's risk management arm, LlamaRisk, has proposed a governance motion to gradually liquidate approximately $1.33 billion in collateral from the Aave V3 Core market on Ethereum, aiming to push the core market back to well-liquidated underlying assets. The affected core assets primarily include rsETH ($661.8 million in collateral), osETH ($279.4 million), LBTC ($177.4 million), tBTC ($117.4 million), and rETH ($81.8 million), and also include eBTC, BTC.b, tETH, PT assets, and LDO; mainstream collateral such as WETH, wstETH, weETH, cbETH, WBTC, cbBTC, and USDe will be retained. The plan is currently under discussion. Initial measures will involve freezing relevant reserves and setting the LTV to 0, allowing borrowers time to repay, replace, or migrate to Aave V4 without directly liquidating existing exposures. Simultaneously, the plan proposes increasing the reserve factor of relevant assets to 99% to guide a smooth exit of funds. https://www.(wublock123.com)/news/llamarisk-proposal-kicks-out-13-3b-collateral-from-aave-v3-71715