Aave was forced to suspend some functions and freeze assets due to platform errors

Aave is currently working on fixing the bug and relaunching the product.

In the early morning of November 5, the lending platform Aave suddenly announced the suspension of some functions and services due to the discovery of vulnerabilities in product versions V2 and V3.

– Suspended Aave V2 Ethereum market
– Suspending certain assets on Aave V2 on Avalanche
– Freeze certain assets on Aave V3 on Polygon, Arbitrum, Optimism

— Avey (@aave) November 4, 2023

Specifically, the V2 version on Ethereum will temporarily cease operations. Additionally, some V2 assets on Avalanche are experiencing errors. After the V3 version, some assets on Polygon, Arbitrum, and Optimism will be temporarily frozen to prevent risks.

However, Aave confirmed that user assets remain safe. The V3 versions on Ethereum, Base, Metis, and the V2 versions on Polygon and Avalanche are not affected by this vulnerability.

Currently, Aave is working hard to overcome the losses and restart the above products. The project highlights that the assets are in the “frozen” category, which means that new supply and borrowing requests will not be accepted. Users who have previously deposited or borrowed money can still withdraw or repay their loans as usual.

In addition, there is a concern that forked projects of Aave V2 and V3 on other blockchains may have vulnerabilities, but so far the Aave team still only recommends “disabling the fixed interest loan function” when forking when necessary.

As we all know, Aave is the leading lending protocol on Ethereum and even the entire DeFi industry. At the time of writing this article, the TVL of the V2 and V3 pools is $5.6 billion, ranking fourth in the DeFi industry.

Before the incident information was exposed, fortunately, the price of AAVE did not fluctuate much. As of this writing, AAVE is trading at around $88.

Current AAVE Price

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