Aave news today is centered on governance proposals that could expand institutional lending, increase collateral efficiency, and add support for new assets across the protocol’s markets. On September 21, Aave governance advanced a LlamaRisk proposal to revise collateral parameters for Bitcoin-related assets on Aave V3 Ethereum Core. The proposal would raise the maximum loan-to-value ratio for WBTC and cbBTC from 73% to 81%, while increasing liquidation thresholds from 78% to 85%. If approved and implemented, the changes would allow users to borrow up to $0.81 against each $1 of eligible Bitcoin-backed collateral, but would also reduce the estimated price cushion before liquidation from approximately 6.4% to 4.7%.