TREE NEWS update: Threshold has set a target for reconnecting tBTC as its week-long redemption pause continues, with Bitcoin redemptions to resume once enough operators return. Aave’s $123.2 million Ethereum Core tBTC reserve remains frozen in the meantime.
Threshold Sets tBTC Reconnection Target as Week-Long Pause Continues
The pause now has a stated exit condition, but the mechanism is telling: resumption depends on operators coming back, not on a fixed date or a protocol-side fix. That makes this a liveness problem as much as a liquidity one, and it leaves the frozen Aave reserve as the visible second-order exposure — a lending market carrying tBTC collateral it cannot currently move. The open question is whether operator participation returns on its own or whether the target alone proves insufficient to restart redemptions.
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