Aave temporarily froze its credit markets after board members passed a vote. The purpose of the vote was to temporarily freeze assets considered volatile and with low liquidity.
Various coins suspended and frozen
The assets reportedly involved are: 0x (ZRX), 1inch (1INCH), Ampleforth (AMPL), Basic Attention Token (BAT), Curve Finance (CRV), Decentraland, DeFi Pulse Index (DPI), Enjin (ENJ) , Maker, RENFIL, Yearn Finance (YFI), and xSUSHI.
A number of stablecoins have also been suspended. This concerns the following stablecoins: GUSD, LUSD, USDP, RAI and sUSD. With all of these assets currently frozen, users cannot take out loans or deposit these assets on the protocol.
Fortunately, the first attack was unsuccessful
With this move, Aave wants to reduce the risk for Aave version 2 and to speed up the eventual migration to version 3. The proposal also reflected community members’ current lower risk tolerance. The authors of the proposal also stressed that the next step depends on liquidity and usage level. The next step is to completely delist or relist the markets.
The proposal now comes after a failed attack that potentially saw $60 million stolen on USDC-backed CRV. However, a miscalculation of the decentralized protocol’s liquidity levels prevented the attack from being successfully completed. To avoid a potential new attack that will be successful, we are now working hard on a solution for this.