Aave Initiates Vote to Temporarily Disable Stable Borrows Across All Networks
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Decentralized finance (DeFi) platform Aave has taken a significant step to bolster security measures, initiating a crucial vote to disable stable borrows on all networks.
This proactive move comes in response to a reported attack vector by a white hat, prompting Aave to suspend certain market operations as a precautionary measure temporarily. The platform aims to safeguard user funds and maintain the integrity of its protocol.
Aave Disables Stable Borrow Rates
In light of the recent attack vector report, Aave has decided to disable stable borrow rates for all assets across all pools and networks. This proposal encompasses a threefold approach.
Aave will utilize the POOL_CONFIGURATOR to set the reserve stable rate borrowing to false for all assets with stable borrowing enabled on v3 pools. This step ensures that stable borrowing is temporarily halted on these pools until further notice.
The POOL_CONFIGURATOR will then disable reserve stable rates on the Ethereum v2 pool, further fortifying the security measures in place. Assets that the freeze steward previously froze as a risk mitigation measure will be unfrozen, reinstating their accessibility and liquidity within the Aave ecosystem.
Safeguarding Aave Markets
In response to the reported vulnerability on November 4, Aave implemented immediate measures to protect its markets. These measures include the temporary suspension and freezing of affected markets. Specifically, the Aave v2 Ethereum Market and specific assets on Aave v2 on Avalanche have been paused and frozen.
Additionally, certain assets on Polygon, Arbitrum, and Optimism have also been temporarily frozen to mitigate potential risks. While these actions were necessary precautions, they have temporarily disrupted trading activities in specific pools.
🚨🚨 🚨 On 11-04 17:38:35 UTC, Aave Guardian has taken necessary protection measurements to pause AaveV2 protocol (and all Aave pools are safe): https://t.co/3xJzfiejig
Given the protocol is “forked” by multiple third parties and the exact details are not disclosed yet, it is… pic.twitter.com/OkO1EZv6pW
— PeckShield Inc. (@peckshield) November 4, 2023
Aave V3 markets on Ethereum, including Base and Metis, and the V2 markets on Polygon and Avalanche, remain unaffected by the identified vulnerabilities. Importantly, Aave assures users that no funds were at risk during this process. Those who supplied or borrowed from a frozen assets pool can still withdraw and repay their positions, though further borrowing or supplying is temporarily restricted until the issue is resolved. Once unpaused, normal operations will resume, allowing users to engage with the affected assets without limitations.
While the temporary suspension of certain markets may cause short-term disruptions, transparency and prompt resolution are crucial elements in preserving user confidence. Platforms in the DeFi realm need to prioritize security measures to ensure the safety of user funds and foster long-term growth and adoption.
Aave’s native token, AAVE, has shown resilience in the face of this event, with a minor price dip but an overall positive trajectory. With the resolution of the issue and the restoration of confidence, the token may experience a resurgence in momentum bolstered by the optimistic climate of the broader crypto market.
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