Aave V2 Ethereum Market and Several Assets Paused — Team Says ‘No Funds Are at Risk’

The decentralized finance (defi) protocol Aave’s so-called guardian stated on Nov. 4 it had paused the Aave V2 Ethereum Market and frozen “sure property on Aave V3 on Polygon, Arbitrum, Optimism.” At the time when the replace was issued, Aave stated an evaluation of what occurred can be made obtainable when the difficulty is resolved.

‘Temporary Prevention Measure’

On Nov. 4 the guardian of Aave, the open-source and non-custodial liquidity protocol, paused the Aave V2 Ethereum Market and sure property on Aave V2 on Avalanche. It additionally froze property on Aave 3 on three chains, particularly: Polygon, Arbitrum and Optimism. The step, which has been framed as a “short-term prevention measure,” was taken after the Aave staff acquired a report in regards to the protocol.

Today we acquired a report of a difficulty on a sure characteristic of the Aave Protocol. After validation by neighborhood builders, the guardian has taken the next short-term prevention measure (no funds are in danger):

— Aave (@aave) November 4, 2023

In an update shared by way of X (previously Twitter), the Aave staff insisted that no consumer funds had been in danger. The replace added that neither the Aave V3 markets on Ethereum, Base and Metis, nor the V2 markets on Polygon and Avalanche had been affected by the reported concern. At the time when the replace was issued, Aave stated an evaluation of what occurred can be made obtainable when the difficulty is resolved.

“A governance proposal to revive the conventional operation of the protocol can be submitted shortly. [A] detailed postmortem can be launched as soon as the difficulty is absolutely resolved,” the Aave staff stated.

Users ‘Can Still Withdraw or Repay Positions’

The staff additionally reminded Aave customers supplying or borrowing from the frozen property that they “can nonetheless withdraw or repay positions.” However, as a result of pause imposed on some Aave markets, customers will solely be capable to provide or borrow extra as soon as the undisclosed concern has been resolved, the staff added.

On X, some social media customers complained in regards to the obvious freeze whereas others requested why the staff seemingly failed to supply additional updates. Meanwhile, one consumer queried why they may not repay or withdraw as per the staff’s announcement.

“Can’t repay USDC/USDT or withdraw from Aave V3 on Avalanche chain. Buttons greyed out. But above you stated you possibly can repay/WD. Could you make clear pls? TY,” the social media consumer stated.

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