What Zero LTV Means for Existing Aave Loans
Key Highlights: Adjusting a collateral asset’s maximum loan-to-value (LTV) to 0% eliminates new borrowing headroom without instantly triggering liquidations. A position’s health factor relies strictly on the liquidation threshold rather than maximum LTV, meaning accounts can remain solvent above 1.0 even with zero borrowing power. Liquidations are triggered only when the health factor falls below ...
