Aave Suspends Certain Operations on Its Protocol, Here’s Why

As part of the effort to secure customers’ funds, Decentralized Finance (DeFi) lending protocol Aave has put a hold on some operations after it was informed of a glitch. The infringement came to light on November 4th, demonstrating some mishaps on different networks including Aave’s V2 Ethereum Market, as well as selected assets on both the Avalanche and V2 platforms. 

No User Fund at Risk 

The action from Aave is just a temporary measure to ensure that customers’ funds are safe pending when the bug is fixed. Until now, users engaged with frozen assets can still withdraw and repay their positions. They are only limited in their ability to supply or borrow. According to the report on the X app, no funds were lost in the swift breach.

“After validation by community developers, the guardian has taken the following temporary prevention measure (no funds are at risk): Pause the Aave V2 Ethereum Market, Pause certain assets on Aave V2 on Avalanche, Freeze certain assets on Aave V3 on Polygon, Arbitrum, Optimism,” the tweet read.

Aave Postmortem Report Upcoming

On the other hand, V3 is still live on Ethereum, Base, and Metis, while V2 operations on Polygon and Avalanche remain unaffected. All protocols that have been suspended will be restarted once there has been an approval of a potential proposal to do so. Also, the protocol plans to publish a postmortem report detailing what went wrong with the protocol once the glitch has been resolved. 

The action taken by the Aave team further underscores the claim that users’ funds are secured and remain uncompromised. In the meantime, the particular features and assets that were affected are yet to be disclosed by Aave. 

Aave Token Remain Unfazed 

It is worth noting that the news of the glitch has not had any significant effect on the price of the AAVE token. At the time of this writing, the coin was trading at $89.03 with only a 0.49% loss within the past 24 hours.

Similarly, cryptocurrency exchange Bitfinex was breached and the perpetrator gained access to partial and stake information, according to the statement issued by the firm.