Aave WETH borrowing recovery restores LTV across Aave V3
Aave WETH borrowing recovery entered a new phase on May 18, with the lending protocol restoring wrapped Ether borrowing across affected markets after advancing the rsETH recovery plan tied to the Kelp DAO exploit. For users who rely on Ether-backed leverage, the move marks a return to more normal conditions after weeks of emergency restrictions. The change is more than a parameter update. It reopens a core part of DeFi lending markets that had been partially shut down after attackers used stolen rsETH as collateral to borrow WETH on Aave V3, triggering one of the more painful knock-on effects in recent months. Now, with rsETH backing restored and withdrawals reopened, Aave has rolled back those WETH limits. As a result, several major markets are back on pre-incident footing, and traders, borrowers, and liquidity providers have a clearer signal that the protocols technical recovery is moving forward. Aave restores WETH borrowing across affected markets Aave restored WETH borrowing across affected markets after advancing the rsETH recovery plan. Just as importantly for active users, WETH loan-to-value ratios returned to pre-incident levels across multiple Aave V3 markets. Aave founder Stani Kulechov said the reset applied across Aave V3 Ethereum Core, Ethereum Prime, Arbitrum, Base, Mantle, and Linea. In