Aave borrowers faced up to 36% APR while a freeze blocked fresh collateral

Borrowers in Aave’s frozen reserves continued to owe interest, with rates reaching as high as 36% annual percentage rate, while the freeze barred fresh deposits. The restrictions also prevented borrowers from adding extra collateral that they could normally use to protect a loan. Suppliers in those reserves could still request their money back when enough tokens were available. Because withdrawals were possible even though new borrowing was blocked in the affected reserves, those withdrawals could make borrowing more expensive.