According to the development that took place minutes ago, rumors spread that the decentralized finance protocol Aave requested a pause in the stablecoin markets due to a potential security vulnerability. The rumors were later confirmed by an official Aave account.
The developers said in their statement:
Today we received an issue report regarding a specific feature of the Aave Protocol. After verification by community developers, the developers have taken the following temporary precautionary measure (no funds are at risk):
Aave V2 pausing the Ethereum market
Pausing certain assets in Aave V2 on Avalanche
Freezing certain assets in Aave V3 on Polygon, Arbitrum, Optimism”
It was clarified in a later statement that the Aave V3 markets on Ethereum, Base and Metis, and the V2 markets on Polygon and Avalanche were not affected. According to the developers' statement, user funds on the platform are not at risk.
The protocol is expected to submit a management proposal shortly to restart normal operations. A detailed review will be published once the issue is fully resolved.
It is stated that users who have cash in frozen assets or borrowed from these assets can continue to withdraw their positions and repay, but they will not be able to provide more liquidity or borrow until the problem is resolved.
*This is not investment advice.