Aave contributors said the protocol froze additional tBTC supply and borrowing in its Ethereum Core market on October 31, after Threshold temporarily paused tBTC minting and redemption. The restriction applies to that asset and market, not unrelated Aave lending pools.
Existing users can still repay debt and withdraw collateral, subject to normal account health requirements. The freeze does not itself change the liquidation threshold, and existing positions can still be liquidated if they breach health requirements. The pause alone does not establish that tBTC has lost its Bitcoin backing.
