[LlamaRisk Proposes to Remove Approximately $1.33 Billion in Collateral from Aave V3 Core] According to The Defiant, Aave's risk management arm, LlamaRisk, has proposed a governance motion to gradually remove approximately $1.33 billion in high-risk collateral from Aave V3 Core, shifting the Ethereum lending market towards existing and highly liquid assets while providing existing borrowers with an exit window. As of November 9th, the debt backed by these assets to be removed amounted to $1.03 billion. The proposal is still under discussion and has not yet been approved. LlamaRisk argues that Core's pooled lending rates expose depositors to additional risks associated with complex collateral without adequate compensation. Assets to be excluded include re-staking tokens, leveraged wrapped assets, derivatives strategies, custom cross-chain bridges, as well as issuers with insufficient resources and reserves with limited demand.