Sunday, June 4, 2023
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Aave suspends the lending markets for 17 tokens on Ethereum

After a vote, Aave V2 ETH frozen temporarily loan markets to 17 tokens, including 5 stablecoins. ONE feat inIrecently born a bad debt 1.6 million dollars for DeFi protocol.

Wow has just suspended the loan markets for YFI indefinitely, VRCZRX, MANA, 1INCH, BAT, sUSD, ENJ, GUSD, AMPL, RAI, USDP, LUSD, xSUSHI, DPI, renFIL and MKR on its V2 Ethereum.

Given that the market situation for these assets is currently volatile, out of an abundance of caution we recommend temporarily freezing the following markets,” read a proposal, 100% approved by the community over the weekend.

Wowwhich launched its V3 last spring, is a reference protocol i decentralized financing. It provides the opportunity to lend and borrow digital assets. Now users will no longer be able to deposit or take out loans with the aforementioned tokens.

The decision to freeze the loan markets on its V2 comes as the DeFi protocol recently suffered a “ feat which ended in failure for the “attacker” but still resulted in a $1.6 million in bad debt for Aave.

“A large loan from CRV which had accumulated was largely offset by protocol liquidation process. However, the position is not fully hedged and there is continued 2.64 million CRV (≈ 1.6 million dollars in present value),” Aave explained last Tuesday.

Earlier this month Abraham Eisenberg – a known “attacker” in the ecosystem that can be more described as ” malicious trader because his actions are not akin to a hack, but to market manipulation – thus carried out various operations to generate profits. However, his strategy did not work this time and the trader lost millions of dollars.

“In the coming days, we believe the Aave community and its contributors will launch a discussion in response to this incident “, said Aave, who would be reassuring about the debt that Eisenberg had created.

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