Aave has restored WETH loan-to-value (LTV) ratios across six blockchain networks, re-enabling users to borrow against WETH collateral and use debt swap functions. The update applies to Aave V3 deployments on Ethereum Core, Ethereum Prime, Arbitrum, Base, Mantle, and Linea. The restoration is part of an rsETH recovery plan.
The rsETH recovery plan
Aave's restoration of WETH LTV ratios is a piece of a broader rsETH recovery plan. The details of that plan remain under wraps, but the move signals progress in addressing risks tied to the liquid staking token. rsETH had previously triggered LTV reductions on Aave to limit exposure. Now, with WETH ratios back to normal, the protocol is taking a step toward normalizing borrowing conditions.
Which networks got the update
The restored settings went live on six networks: Ethereum Core, Ethereum Prime, Arbitrum, Base, Mantle, and Linea. All are Aave V3 deployments. The list covers Aave's main Ethereum instances plus four Layer 2 chains and one Ethereum-compatible network. Users on each of those chains can now borrow against WETH again and execute debt swaps—a feature that lets borrowers switch between debt positions without closing a loan.
What the change means for users
For anyone holding WETH on Aave, the restored LTV means they can once again use it as collateral to borrow other assets. The debt swap function also gets unlocked, giving borrowers more flexibility to manage their positions. The move effectively reverses earlier restrictions that had been put in place during the rsETH incident. Aave founder Stani was mentioned in the article, though no further details were provided.
The restored settings are live now across the six networks. Further updates from Aave regarding the full rsETH recovery plan are expected in the coming weeks.
