Share this article
DeFi Lender Compound Tightens Borrowing Limits After Aave Exploit Attempt
A passed proposal introduces borrowing caps for five cryptocurrencies and sets stricter loan limits for another five.
Updated Nov 29, 2022, 8:42 p.m. Published Nov 29, 2022, 4:08 p.m.
Make us preferred on Google
Decentralized lending protocol Compound Finance passed a proposal to impose loan limits and introduce new borrowing caps to lower risk on its platform.
The community voted overwhelmingly in favor of introducing or lowering the maximum borrowing amount for 10 cryptocurrencies, including wBTC, LINK and UNI.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
“Setting borrow caps helps avoid high-risk attack vectors while sacrificing little capital efficiency and allowing for a threshold of organic borrow demand,” the proposal read.
The voting concluded on Monday and it is in the queue for execution at press time.
Compound’s action comes after an alleged exploit attempt on Aave – a rival lending platform – brought scrutiny to any potential vulnerabilities in decentralized finance (DeFi) protocols’ lending mechanism.
The exploiter, who appeared to be infamous DeFi trader Avi Eisenberg, borrowed large sums of illiquid CRV tokens on Aave in an attempt to create bad debt on the protocol. Aave froze borrowing in 17 crypto assets Monday to mitigate risk from potential attacks before its network upgrade.
Eisenberg became known for his self-described “highly profitable trading strategy” exploiting a loophole on Solana-based Mango Markets, draining $114 million from the protocol last month.
Read more: $114M Mango Markets Exploiter Outs Himself, Returns Most of the Money
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
How a 'perpetual’ stock trick could solve Michael Saylor’s $8 billion debt problem
The bitcoin treasury firm is using perpetual preferreds to retire convertibles, offering a potential framework for managing long-dated leverage.
What to know:
- Strive upsized its SATA follow on offering beyond $150 million, pricing the perpetual preferred at $90.
- The structure offers a blueprint for replacing fixed maturity convertibles with perpetual equity capital that removes refinancing risk.
- Strategy has a $3 billion convertible tranche due in June 2028 with a $672.40 conversion price, which could be addressed using a similar preferred equity approach.
Top Stories
