Aave will freeze $279M in osETH, unless StakeWise wins this vote

StakeWise founder Dmitri asked Aave governance on Nov. 11 to vote separately on freezing osETH, the protocol's staking token, challenging a plan to close it to new lending exposure on Aave's V3 Core market. His forum response challenged a broader collateral overhaul proposed by risk adviser LlamaRisk on Nov. 10. The plan would stop new osETH supply and borrowing against it while leaving existing positions open. LlamaRisk argues that V3's shared lending pool leaves Wrapped Ethereum (WETH) and stablecoin suppliers exposed to collateral risks at a pooled borrowing rate, while borrowers collect the additional spread from looping strategies that use borrowed funds to build larger staking positions.

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