LlamaRisk proposed lowering the Aave borrowing limit to prevent attackers from establishing large positions following the Binance hack.

LlamaRisk has proposed lowering borrowing limits on Aave V3 and V4 before their freezes are lifted to prevent attackers from establishing large positions following the Binance hack. This move would reduce idle borrowing capacity on Aave V3 by approximately $3.7 billion and on Aave V4 by approximately $130 million. For markets with borrowings exceeding $10 million before the hack and available funds exceeding $10 million, the new limit would be the greater of the pre-hack borrowing amount and the current borrowing amount, increased by 2%. The WETH borrowing limit on Aave V3 Core would be reduced from 2.4 million to 1.79 million, and the USDT borrowing limit from 3.09 billion to 2.56 billion. The attackers have already borrowed 19,762 WETH on Aave V3 Core.