LlamaRisk Plans Time-Based Borrowing Limits for Aave After $44.6M Loan

LlamaRisk, Aave’s risk manager, is developing time-based borrowing limits after a wallet it places in the Binance hot-wallet exploiter’s cluster borrowed about $44.6 million in Wrapped Ether (WETH).

CEO Adam Sadowski said the firm is building a system that would limit “the borrowing capability over certain time periods.” He did not give a launch date, cap amounts or the length of each period.

On Oct. 29, the wallet borrowed 19,762 Wrapped Ether (WETH), then worth about $44.6 million, against 60 million Tether USDt (USDT) in collateral. The borrowing took place over roughly three minutes.

A liquidator repaid about 9,884 WETH from the position at 9:49 a.m. ET (14:49 UTC) on Nov. 4 and received about $24.38 million in USDT. At 11:04 a.m. ET (16:04 UTC) on Nov. 5, the position still owed about 9,885 WETH against roughly $35.57 million in USDT collateral.

Aave’s guardians began freezing markets about 40 minutes after the borrowing. During the freeze, users could repay loans or withdraw collateral, while new deposits and borrowing were disabled. Aave’s Ethereum Core market has since reopened, but USDT and USDC deposits there do not add borrowing capacity because their loan-to-value ratios are zero.

LlamaRisk had previously outlined lower borrowing caps ahead of a phased market reopening. Sadowski also argued for automating risk responses, saying AI agents scan for exploit opportunities and act on them.