Aave Protocol Halts These Market Operations Due To Bug Report
05 November 2023 - 10:39AM
NEWSBTC
Decentralized finance (DeFi) platform Aave has suspended operations
in a number of markets after receiving a problem report on a
certain function of the protocol. DeFi Protocol Discovers
Vulnerability; Is User Funds At Risk? On Saturday, November 4,
decentralized lending protocol Aave announced – via a post on X
(formerly Twitter) that it has paused the Aave V2 Ethereum market
and suspended certain assets on Avalanche. In addition, the
protocol has frozen specific assets on Aave V3 on Polygon,
Arbitrum, and Optimism. According to the protocol’s
announcement, these actions serve as a temporary precautionary
measure following a problem report on a specific feature.
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Price Nears Key Resistance Furthermore, Aave said in the post that
the Aave V3 markets on Ethereum, Base, and Metis and the V2 markets
on Polygon and Avalanche are unaffected. Meanwhile, no funds on any
of the markets were at risk, according to DeFi lending protocol. 🚨🚨
🚨 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 While Aave did not specify what the
issue is or the feature that caused the problem, the protocol said
it would release a detailed explanation once there is a full
resolution. The statement read: 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 further clarified that users supplying or borrowing
from a frozen assets pool can still withdraw and repay positions.
However, these users can’t supply or borrow more funds from the
frozen assets pool until the issue is resolved. The protocol
added: On paused assets, no action can be done until
unpaused. AAVE Price Remains Steady Despite Protocol Vulnerability
There is no evidence to suggest that the problem has had any impact
on the value of the protocol’s native token, AAVE. As of this
writing, the token is valued at $90.15, reflecting a negligible
0.9% price dip in the past 24 hours. Nevertheless, the token is
outperforming on a bigger timeframe. Over the past week, AAVE’s
price has swelled by more than 10%, touching the $100 mark – for
the first time since February – at some point during the week.
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Reveals Similarities For 80% Rise Although the price of AAVE
has been moving mostly sideways in the past few days, a resolution
of the current issue might trigger renewed momentum for the token.
Hence, there is a chance that the cryptocurrency might revisit $100
again, especially considering the optimistic climate of the crypto
market. 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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