The temporarily frozen lending markets on Aave include 12 Ethereum-based tokens and five stablecoins. Notably, the lending markets were frozen after its governance members passed a vote that strives to temporarily freeze assets that are considered to be volatile and have low liquidity.
Some of the assets included Curve Finance (CRV), 0x (ZRX), Yearn Finance (YFI), Decentraland (MANA), Enjin (ENJ), Ampleforth (AMPL), 1inch (1INCH), Basic Attention Token (BAT), xSUSHI, Maker (MKR), DeFi Pulse Index (DPI), and RENFIL.
Besides these, the protocol also suspended these stablecoins: sUSD, USDP, LUSD, GUSD, and RAI. With these assets frozen, users cannot access any loans on the assets or deposit their assets to the protocol.
Based on the proposal, this move aims to minimize the risk for Aave version 2 and promote the eventual migration to version 3. This proposal also pointed out the lower risk tolerance of the community members currently. Nonetheless, the authors of this proposal also highlighted that the next course of action which might be to either delist or relist the markets would mainly depend on the liquidity and usage levels.
The governance proposal comes after a failed $60-million attack on CRV using USD Coin (USDC) as collateral. That attack did not go through due to a wrong calculation of the decentralized protocol’s liquidity levels. Nonetheless, contributors within the project worked on the proposal to prevent more exploitation attempts on the protocol.Buy Crypto Now
Despite the current turbulence in the general crypto market, a DeFi protocol managed to raise $10 million in investments from several investors including Ava Labs and Bitfinex. In the past week, Cosmos-based ecosystem Onomy secured some funds to develop its new protocol that integrates decentralized finance and foreign exchange.
Decentralized liquidity protocol Aave has suspended lending markets for 17 tokens striving to fend off volatility risks that may result in more attempts at market manipulation.