Aave Halts Multiple Markets Following Reports of Technical Glitch

Aave, a decentralized finance (DeFi) protocol, has temporarily paused several markets due to an issue with a certain feature, as reported on the platform’s official Twitter account. The pause affects various networks, including Aave V2 Ethereum Market and certain assets on Aave V2 on Avalanche. In addition, certain assets on Polygon, Arbitrum, and Optimism have been frozen.

The specific problem or feature that caused the issue has not been disclosed by Aave. However, the protocol emphasized that no funds are at risk on any of its markets. Aave stated, “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 also clarified that Aave V3 markets on Ethereum, Base, and Metis are unaffected by the issue. Similarly, Aave V2 markets on Polygon and Avalanche remain unaffected as well. The protocol assured users that a governance proposal will be submitted soon to restore normal operation, and a detailed postmortem will be released once the issue is fully resolved.

While users can still withdraw and repay positions for frozen assets, they are unable to supply or borrow further assets until the issue is resolved. Paused assets cannot be moved or traded at this time. It is important to note that there is no evidence suggesting that the issue has impacted the price of Aave’s native token, AAVE, which is currently trading at $89.10, experiencing a 1.54% decrease, according to CoinMarketCap.

For more information on related topics, please refer to the following article: Beyond crypto — Zero-knowledge proofs show potential from voting to finance.

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J-S Tremblay
About the author - J-S Tremblay

I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...

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