Aave reopens after $6.3B Binance hack; nine assets restricted

- Aave resumed lending markets following the $6.3 billion Binance hack - Nine assets, including USDT and USDC, remain restricted as loan collateral On October 30, 2026, CoinDesk reported that Aave, a leading decentralized finance (DeFi) protocol, had fully resumed its V3 and V4 lending markets. The protocol had temporarily frozen these markets in response to hackers laundering funds from the $6.3 billion Binance breach, and the freeze began on October 29, 2026, as Aave moved to contain risk even though the protocol itself remained uncompromised. According to CoinDesk, hackers deposited $60 million in USDT and borrowed $44.6 million in WETH, and stablecoin issuers then froze assets, which prompted Aave to swiftly restrict lending activity. All markets have reopened except for nine assets—USDT, USDC, POL, WAVAX, sAVAX, XAUT, PAXG, OP, and related variants—which are currently set at zero loan-to-value (LTV). This measure prevents these assets from serving as new collateral for loans, but users can still deposit, withdraw, borrow, and repay. Existing loan positions remain unaffected unless users modify collateral status, and the incident underscores how major hacks at centralized exchanges can prompt defensive action and risk controls at decentralized platforms. In addition, Aave implemented further risk management as it reduced borrowing limits and removed $3.8 billion in unused borrow capacity to protect platform liquidity. According to the Aave Governance Forum, these adjustments aim to maintain market stability during industry-wide fallout from the Binance hack. As of 2026-10-31, Aave (AAVE) is trading at $132.445, up 5.03% over the previous 24 hours. Meanwhile, Tether USDt (USDT) is at $0.999 (+0.03%), Polygon (POL) at $0.092 (-0.37%), USDC at $1 (+0.005%), PAX Gold (PAXG) at $3,893.46 (-2.21%), Tether Gold (XAUt) at $3,873.54 (-2.54%), and Optimism (OP) at $0.112 (+7.14%), according to market data.