# All assets on Gnosis V3 stuck when holding USDC **URL:** \ **Category:** Other\ **Created:** [November 12, 2025, 4:11pm UTC](https://governance.aave.com/t/all-assets-on-gnosis-v3-stuck-when-holding-usdc/23402 "2025-11-12T16:11:05Z")\ **Posts on this page:** 1\ **Showing post:** 4
**Author:** ![ChaosLabs](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/chaoslabs/32/6850_2.png) [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)\ **Post date:** [November 13, 2025, 2:48pm UTC](https://governance.aave.com/t/all-assets-on-gnosis-v3-stuck-when-holding-usdc/23402/4 "2025-11-13T14:48:24Z")
We understand that the current state of the deprecated bridged USDC reserve can create confusion, so we want to clarify what is happening and the actual impact. ### **Context on the Deprecated USDC Implementation** The legacy bridged USDC on Gnosis (USD//C) is in the process of being deprecated, for which more information can be found [here](https://governance.aave.com/t/arfc-usdc-old-deprecation-on-gnosis-chain-instance/23189). This “unofficial” token no longer aligns with the infrastructure and directionality of the chain, and a newer, Circle-canonical form of USDC is now available. As part of the deprecation process, demand patterns shift significantly: when a reserve transitions toward phase-out, both borrowing and supplying behaviors diverge from normal market conditions, especially when constrained. In this specific case, the reserve is now fully utilized because a _single inelastic borrower_ with a $750K debt has not yet repaid their position, resulting in total borrows equal to total supply. ### **Impact on Withdrawals and Cross-Asset Behavior** It is important to emphasize that this does not create cross-contagion across the rest of the Gnosis V3 market: 1. All non-USD//C reserves remain fully withdrawable. The situation in the deprecated USD//C market does not propagate to wstETH or any other listed assets. 2. Users supplying USD//C with no collateral usage (0% HF exposure) can withdraw all other assets without restriction. 3. Users supplying USD//C with _some_ collateral usage can still withdraw other assets, as long as their outstanding debt is sufficiently covered by the collateral value of assets _other than_ USD//C. In other words, if the non-USD//C collateral value (adjusted for LT) exceeds total debt, those assets can be withdrawn normally. Because of these mechanics, the amount of \*non-\*USD/C _liquidity_ actually constrained by the fully utilized USDC pool is relatively small, approximately $11K in aggregate across all affected users. We recognize this situation is inconvenient for a subset of users, and the teams are monitoring it closely. As with any deprecation process, the pool will return to normal withdrawability once the remaining borrower eventually closes their position. --- _[View the full topic](https://governance.aave.com/t/all-assets-on-gnosis-v3-stuck-when-holding-usdc/23402)._