Aave is freezing the V3 and V4 markets due to abnormal wallet issues related to Binance

Aave's official statement claims that it is aware of reports regarding potential incidents involving Binance-associated wallets. Aave's contracts are unaffected, and positions remain over-collateralized; as a precaution, all markets of V3 and V4 operated by the DAO have been frozen.

This freeze will suspend new deposits and loans, but users can still withdraw funds and repay existing positions. Previously, Binance reportedly experienced a large-scale abnormal outflow, with on-chain monitoring indicating that the scale involved reached billions of dollars, and some stablecoins have been frozen by the issuers; CZ stated that the actual losses may slightly exceed 1 billion dollars and will be fully covered.