Aave said that ETH borrowing restrictions introduced after April’s rsETH-related market stress have been lifted. In its official X update, Aave confirmed that WETH collateral limits were restored, reopening a key part of borrowing capacity for users.
In accordance with the rsETH technical recovery plan, WETH LTVs on Aave V3 Ethereum Core, Ethereum Prime, Arbitrum, Base, Mantle, and Linea have been restored to their pre-incident values.
WETH now operates as normal across all affected V3 deployments.
— Aave (@aave) May 17, 2026
The change affects Aave users who rely on wrapped ETH collateral for borrowing and leveraged DeFi strategies. The restrictions were put in place during the recovery phase following a major April exploit, when risk controls tightened around exposure, liquidity and collateral parameters.
The next point to watch is whether normal borrowing demand returns without renewed stress in related assets. For now, the update marks a risk-parameter rollback, not a guarantee that market conditions around restaked ETH collateral have fully normalized.
Source: Aave official X account.
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