Users of DeFi altcoin project Aave were reportedly unable to access over $100 million in assets due to a bug. However, the developers of the protocol said that all funds on its platform are safe.
Aave users can’t access their assets, what’s going on?
A bug in Aave V2, the decentralized Finance (DeFi) lending protocol on the Polygon network, made it impossible for users to interact with nearly $110 million worth of assets on the platform. Blockchain security firm BlockSec reported on May 19 that the problem was caused by the ReserveInterestRateStrategy contract used in Polygon. The upgrade was aimed at providing a more efficient interest rate curve in Aave V2 and optimizing the use of the platform.
Update AAVE Incompatible in Polygon / Source: BlockSecHowever, due to its incompatibility with the network, Aave users were unable to interact with their presence in the protocol. This means that users cannot borrow, withdraw, repay, or further supply these assets to the protocol each time a call is returned.
Altcoin project team announces funds are safe
The developers state that only Aave V2 on Polygon is affected. Thus, they acknowledge the problem as well. According to the statement, V2 on Ethereum and Avalanche works perfectly and so does the V3 protocol. The developers also reassured users that their funds, including the affected assets, are safe. The problem is not a security issue. However, users will not be able to fully interact with assets until the issue is resolved. The only way this can be achieved is through governance.
Aave working on solution, altcoin price is not severely affected
The dev team submitted a new governance proposal to address the issue. Accordingly, Aave DAO will begin voting on the proposal later today. The offer includes:
Given the administration times, if approved, the fix will be implemented in approximately 7 days from now: 1-day delay to start voting, 3-day voting, 1-day timelock in Ethereum, and 2-day extra timelock in Polygon.
This event further highlights how complex DeFi can be as different Ethereum Virtual Machine compatible (EVM) Blockchains have their own unique characteristics.
cryptocoin.com As you follow from , Aave is a DeFi platform with a large number of users. It is also among the leading DeFi protocols in the crypto world. According to Defillama, the total value (TVL) of assets locked in the crypto lending protocol stands at $5.18 billion. Aave V2 accounts for most of this TVL at $3.72 billion.
AAVE price performanceMeanwhile, the news had little impact on AAVE’s price performance. According to CoinMarketCap data, the altcoin has dropped 0.72% in the last 24 hours, trading at $65 as of press time.
