Aave Announces Plan to Rescue Tokens Lost in Smart Contracts
In a move to address the concerns of its community, Aave, a DeFi lending protocol, has announced its plan to rescue tokens that were mistakenly sent to smart contract addresses. The plan was announced on March 10, 2023, with the activation of Aave’s rescue mission Phase 1, Level 2 (Long) Executor part.
Since the inception of the Aave ecosystem, users have mistakenly sent tokens to incorrect addresses. In most cases, these tokens are lost forever, as it is impossible to prove that the transfer was an error. However, some tokens were sent to well-known smart contract addresses, making it possible to recover them.
The Aave community had requested the recovery of these tokens, and Aave has come up with a plan to rescue them. The initial phase of the rescue mission will target tokens that were sent to the AAVE, LEND, USDT, UNI, and stkAAVE token contracts.
Data from Bored Ghosts Developing Lab shows that the total value of the retrieved tokens is estimated at around 2.18 million USD. AAVE tokens make up the majority in the first phase with over 29,188 AAVE and 107 stkAAVE, equivalent to 2.16 million USD. After recovery, LEND tokens will be converted to AAVE at a ratio of 100 LEND: 1 AAVE.
The AAVE rescue mission plan will involve connecting and initializing new implementations of the AAVE token and the stkAAVE token with appropriate amounts and sending them to the AaveMerkleDistributor specified in the Rescue Short Executor Proposal. The new implementations will include extra logic on their initialize() function, with everything else remaining the same.
The tokens that will be rescued in this phase include LEND, AAVE, UNI, USDT, and stkAAVE. The LEND tokens will be claimed already as AAVE tokens, with the transformation from LEND to AAVE already taken into account (1 AAVE = 100 LEND).
However, not all lost tokens will be recovered in this process. Aave stated that only tokens with a minimum value of 500 USD will be recovered due to concerns about the cost. The project will also not recover tokens sent from centralized exchange wallets.
After the tokens are recovered, the project will send them to the distributor’s smart contract. Users can then retrieve their tokens on the contract by using the wallet address that lost the initial tokens.
The contracts for the rescue mission have been audited by Certora, and implementation diffs have been generated to ensure that the new implementations only differ on the rescue logic. The storage layouts diffs have also been generated for the contracts where the implementation is updated.
The Aave community has welcomed the rescue mission plan, and it is seen as a positive move towards building trust in the DeFi ecosystem. The success of the rescue mission will further strengthen the Aave ecosystem and set an example for other DeFi projects to follow.
In conclusion, Aave’s rescue mission Phase 1, Level 2 (Long) Executor part is a significant step towards addressing the concerns of its community. The rescue plan will not only recover lost tokens but also build trust and confidence in the DeFi ecosystem. With the success of this phase, Aave will move closer to achieving its vision of a decentralized and transparent financial system.
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