Aave Temporarily Suspends Several Markets due to Technical Issue; Assures No Funds at Risk
Summary:
On November 4th, Aave, a decentralized finance (DeFi) protocol, temporarily halted several markets due to an issue with a specific function. The suspension affected various networks and assets across Aave V2 Ethereum Market, Aave V2 Avalanche, Polygon, Arbitrum and Optimism. Despite the issue, Aave assured that no customer funds were at risk and that markets on Ethereum, Base, Metis, Polygon and Avalanche were unaffected. A governance proposal to restore normal operations will soon be proposed.
Aave, a protocol in the decentralized finance (DeFi) arena, temporarily halted several markets on November 4 a result of a detected problem with a particular function, as was reported on the X platform (formerly known as Twitter). The temporary suspension impacted various networks such as the Aave V2 Ethereum Market and specific assets on Aave V2 Avalanche. Assets on Polygon, Optimism, and Arbitrum have been put on hold. "Today we were alerted to a problem with a particular function of the Aave Protocol," Aave reported and added that after the validation from community developers, the protector took temporary measures (assuring no funds were at risk).
The exact nature of the issue or the specific problematic feature prompting this decision has not been disclosed by Aave, nor was there a list of the impacted assets provided. Aave made it clear that no customer funds were at risk due to the issue. Aave's official statement suggests that Aave V3 markets operating on Ethereum, Base and Metis are unaffected by this problem. Simultaneously, Aave V2 markets functioning on Polygon and Avalanche are also spared. "A governance proposal aiming to reinstate normal operations will be proposed soon. A comprehensive analysis will be made available once the issue is completely rectified," stated the protocol through a thread. Users involved in lending or borrowing from frozen assets can still withdraw and repay their positions. However, no further lending or borrowing activity can take place until the problem is fixed according to Aave. No steps can be taken on suspended assets.
There's no evidence of any impact of this situation on the value of Aave's native token, AAVE. The current trading value is $89.10, down by 1.54%, based on data from CoinMarketCap.
Published At
11/4/2023 7:54:51 PM
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