The suspension affects several markets, e.g. Aave V2 Ethereum Market and certain assets on the AV v2 Avalanche platform. Furthermore, certain assets have been shut down on Polygon, Arbitrum and Optimism.
Decentralized finance (DeFi) protocol Aave paused a number of markets on Nov. 4 after receiving reports of an issue affecting “a certain feature,” according to a post on X (formerly Twitter).
The pause is impacting several networks, including Aave V2's Ethereum market as well as a number of assets on the Avalanche network. Furthermore, some of the assets from Polygon, Arbitrum and Optimism have been locked up.
"We have been informed today that there is an issue regarding one of the aspects of the Aave Protocol, following verifications by Community developers," said Aave, and added: "The guardian has adopted the following interim prevention measure No funds are at risk."
Aave did not provide information about the nature of the problem or feature which caused it, and what assets were affected. Aave also pointed out in his report that there was no risk to funds on any of its markets.
Today we received a report of an issue on a certain feature of the Aave Protocol. Following validation of Community developers, the guardian took the following temporary safeguard measure to prevent any funds from being jeopardised— Aave (@aave) November 4, 2023
This issue has not affected Aave V3 markets for Ethereum, Base and Metis in accordance with the protocol. Moreover, there were no adverse reactions in the markets for Avove V2 on Polygon and Avalanche.
"A governance proposal will be sent shortly to restore the regular functioning of these protocols." Once the issue has been fully resolved, a detailed autopsy report will be issued," according to the protocol mentioned in the thread.
Aave reported that, as long as the problem is not resolved, users who are providing or borrowing from frozen assets may continue to withdraw their positions and pay them back but cannot provide or lend other assets. In the case of suspended assets, no measures shall be taken.
The price of Aave's own token, AAVE, does not appear to have been affected by this issue. According to CoinmarketCap, the token is now worth $89.10 and has fallen by 1.54% as of this writing.
Magazine: Beyond crypto — Zero-knowledge proofs show potential from voting to finance