Last updated 10:26 UTC, 31 October 2026.
What happened
On 31 October 2026, Threshold Network issued a pre-emptive pause of tBTC mints & redeems. We are in communication with the Threshold team and are closely monitoring their updates.
tBTC is listed on Aave V3 on Ethereum Core, Base, and Arbitrum. The Base and Arbitrum reserves were previously frozen in earlier asset deprecation rounds, making Ethereum Core the only market where tBTC could still support new borrowing.
What we did
We recommended a pre-emptive freeze of tBTC on Aave V3 Ethereum Core. The aim is to prevent Aave’s exposure to tBTC from growing while the pause is in place by stopping new borrowing against tBTC and new tBTC deposits until the incident is confirmed to be fully mitigated by Threshold. We prepared the freeze transaction and proposed it to the guardian multisig, which executed it at 10:01 UTC.
A freeze stops new tBTC deposits and stops tBTC from adding borrowing power to any position. Users can still repay and withdraw; liquidations continue to run; and borrowing against other collateral works as normal. tBTC keeps its liquidation threshold, so the health factors of existing positions do not change and no position becomes liquidatable due to the freeze. Frozen reserves accept no new supply, so while the freeze is on, users can raise their health factor by repaying debt or adding additional collateral.
The freeze applies only to tBTC on Ethereum Core. No other reserve is affected, and no market has been paused.
Next steps
We will continue to follow Threshold’s updates and monitor tBTC positions on Aave and tBTC liquidity on secondary markets. Once we have assurance that tBTC operations return to normal, we will propose restorative measures, and we will share that update in this thread.