Aave Suspends Markets
Aave, a DeFi product, has issued a stopgap order in multiple countries concerning a certain protocol utility.
DeFi Protocol Discovers Vulnerability; Is User Funds At Risk? Is this a reason for Aave Suspends Markets?
On November 4, Aave, the decentralized lending platform, tweeted on X (the former Twitter) channel stating that it has paused the Aave V2 Ethereum market and has temporarily halted select assets on the Avalanche network. More analytics, namely those related to Aave V3 on Polygon, Arbitrum, and Optimism, are currently frozen temporarily.
Today we received a report of an issue on a certain feature of the Aave Protocol. After validation by community developers, the guardian has taken the following temporary prevention measure (no funds are at risk):
— Aave (@aave) November 4, 2023
In accordance with its statement, however, these measures are only considered to be an temporary protective measure taken rather than reaction to an issue related to one of the features.
In addition to this, Aave has made it a point to say that the Aave V3 marketplaces in Ethereum, Base, and Metis, as well as the V2 markets on Polygon and Avalanche, will not be affected. Essentially, the loan protocol of DeFi is asserting that even after the failure of any of the markets, the funds are safe.
🚨🚨 🚨 On 11-04 17:38:35 UTC, Aave Guardian has taken necessary protection measurements to pause AaveV2 protocol (and all Aave pools are safe): https://t.co/3xJzfiejig
Given the protocol is “forked” by multiple third parties and the exact details are not disclosed yet, it is… pic.twitter.com/OkO1EZv6pW
— PeckShield Inc. (@peckshield) November 4, 2023
A governance proposal to restore the normal operation of the protocols will be submitted shortly. A detailed postmortem will be released once the issue is fully resolved.
Aave Suspends Markets
Regarding the assets that have been temporarily paused, no actions can be executed until they are unpaused.
AAVE Price Holds Steady Amid Protocol Vulnerability – Aave Suspends Markets
Nevertheless,AAWE appears to have outperformed other asset classes in the longer perspective over time. On the backdrop of the last 7 days, its price flourished almost beyond 10%, with even $100 at some stage, a peak not reached since February.
Whilst AAVE’s price would still be at a stable level in the recent matter days, the good news could restore the lost energy to the coin. Vastly holding this in light of this, there is a chance that the price may have climb back up to $100 just as long as the cryptocurrency market takes a turn for the better.
AAVE price slows down upward momentum on the daily timeframe | Source: AAVEUSDT chart on TradingView
Featured image from Binance Academy, chart from TradingView
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