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Crypto DeFi

Threshold Sets tBTC Reconnection Target as Week-Long Pause Continues

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.

Original source

AI take

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.

Generated by AI for reference only.

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