Aave has reopened its DAO-operated V3 and V4 markets after emergency restrictions tied to the Binance hack, saying its contracts were never affected and existing positions remained collateralised. The incident was a containment exercise, not an Aave contract exploit or an immediate solvency shortfall.
A wallet linked to the attacker deposited 60 million USDT into Aave V3 on Ethereum, then borrowed 19,762 wrapped Ether, valued at about $44.6 million, before controls took effect. Aave blocked new deposits and borrowing while keeping withdrawals, repayments and liquidations open. The position remained overcollateralised, which helped prevent the borrowed amount from becoming an immediate loss to lenders.
Reopening does not mean every asset has returned to normal use: 9 assets still cannot be used to create new borrowing power as collateral. That leaves the response focused on limiting further exposure while preserving exits for users, rather than repairing a failure in Aave’s code or balance sheet.
For now, the clearest takeaway is narrower: Aave contained the risk inside its own markets, reopened them, and kept some collateral limits in place even after the immediate scare passed.