Aave temporarily freezes loan markets to ward off further attacks

Temporarily frozen lending markets include twelve Ethereum-based tokens and five stablecoins.

Lending markets were frozen just after its governance members passed a vote to temporarily freeze assets deemed volatile and low-liquidity. The assets included in the list are Yearn Finance (YFI), Curve Finance (CRV), 0x (ZRX), Decentraland (MANA), 1inch (1INCH), Basic Attention Token (BAT), Enjin (ENJ), Ampleforth (AMPL) , DeFi Pulse Index (DPI), RENFIL, Maker (MKR) and xSUSHI.

Apart from these, the protocol has also suspended the following stablecoins: sUSD, USDP, LUSD, GUSD, and RAI. With frozen assets, users cannot borrow against the assets or deposit their assets into the protocol.

According to the proposal, the purpose of the move is to reduce risk to Aave version 2 and promote eventual migration to version 3. The proposal also highlighted the lower risk tolerance of community members for the moment. However, the authors of the proposal also pointed out that the next course of action, which could be to withdraw or re-list markets, would depend on levels of liquidity and usage.

Related: Mango Markets hacker allegedly simulated a short Curve attack to exploit Aave

The governance proposal follows a failed $60 million attack on CRV using USD (USDC) coins as collateral. The attack could not pass due to a miscalculation of the liquidity levels of the decentralized protocol. Nevertheless, contributors within the project have been working on the proposal to prevent further exploitation attempts on the pr...