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

Blockchain Technology

The decentralized finance (defi) protocol Aave’s so-called guardian said on Nov. 4 it had paused the Aave V2 Ethereum Market and frozen “certain assets on Aave V3 on Polygon, Arbitrum, Optimism.” At the time when the update was issued, Aave said an analysis of what happened would be made available when the issue 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 certain assets on Aave V2 on Avalanche. It also froze assets on Aave 3 on three chains, namely: Polygon, Arbitrum and Optimism. The step, which has been framed as a “temporary prevention measure,” was taken after the Aave team received a report concerning the protocol.

In an update shared via X (formerly Twitter), the Aave team insisted that no user funds were at risk. The update added that neither the Aave V3 markets on Ethereum, Base and Metis, nor the V2 markets on Polygon and Avalanche were affected by the reported issue. At the time when the update was issued, Aave said an analysis of what happened would be made available when the issue is resolved.

“A governance proposal to restore the normal operation of the protocol will be submitted shortly. [A] detailed postmortem will be released once the issue is fully resolved,” the Aave team said.

Users ‘Can Still Withdraw or Repay Positions’

The team also reminded Aave users supplying or borrowing from the frozen assets that they “can still withdraw or repay positions.” However, due to the pause imposed on some Aave markets, users will only be able to supply or borrow more once the undisclosed issue has been resolved, the team added.

On X, some social media users complained about the apparent freeze while others asked why the team seemingly failed to provide further updates. Meanwhile, one user queried why they could not repay or withdraw as per the team’s announcement.

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

What are your thoughts on this story? Let us know what you think in the comments section below.

Source: Bitcoin

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