Decentralized finance (DeFi) protocol Aave suspended borrowing of assets in the Ethereum liquidity pool following a vote by the token holder community. The goal is to mitigate risks – and to prepare for protocol upgrades.
The Ethereum liquidity pool is considered the largest on Aave, with $5.6 billion of liquidity locked in six chains on the Ffp protocol, closing 17 assets including Curve (CRV), 1inch (1INCH), Yearn Finance. (YFI) and several stablecoins
offerThis was written by Gauntlet Network, a DeFi infrastructure company, with the aim of avoiding the risk of Aave going into bad debt. And it will allow the protocol to migrate from v2 to v3 version by giving users the option to migrate their assets to the upgraded network. as specified by the company
“In response to the latest market events and the ongoing contraction of liquidity in various markets, the proposal seeks to reduce the risk of a large number of highly volatile assets,” the proposal said.
The upgraded version of Aave currently runs on Avalanche, Fantom, and Harmony Layer 1 networks, as well as Ethereum Arbitrum, Polygon, and Optimism-based Layer 2 networks.
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