Aave Protocol Successfully Restores Full Functionality After Temporary Shutdown
In a recent announcement, the lending protocol Aave has declared the complete restoration of its functionalities in both the V2 and V3 versions. This comes after a sudden freeze of several services on November 5th, prompting the project to address and rectify the issue promptly.
As of November 13th, Aave has revealed that its decentralized autonomous organization (DAO) has approved a proposal for the resumption of operations for both Aave V2 on Ethereum and Aave V3 on Optimism, Arbitrum, Avalanche, and Polygon. These versions had encountered a significant incident that led to the urgent suspension of their lending services on November 5th. The Aave team reassured the community that all Aave V2 markets are now operational.
All Aave V2 markets are now operational. Security of the Aave Protocol is a non-negotiable priority for the community. We appreciate the patience and support during this time, continue to follow Governance for a postmortem in due course. https://t.co/OcqAU0NUMj
— Aave (@aave) November 13, 2023
The security of the Aave Protocol remains a top priority for the community, emphasizing its non-negotiable nature. In a statement, Aave expressed gratitude for the patience and support received during the disruption and urged users to continue following governance for a postmortem analysis to be conducted in due course.
Users can now seamlessly deposit, withdraw, borrow, and close their positions as normal. Marc Zeller, a contributor to Aave and the founder of Aave Chan, affirmed that customer assets were unaffected and remained secure throughout the incident:
“The incident has concluded. Everything has been fixed, and no user funds were compromised.”
The DAO has yet to disclose the specific reasons behind the incident but has promised to reveal them at an appropriate time.
Another concern arising from the incident is the potential vulnerability of projects forked from Aave V2 and V3 on different blockchains. Aave has advised caution, recommending that these forked versions should disable the lending features with fixed interest rates to mitigate risks.
Despite the temporary setback, the AAVE token is currently priced at $96 USD, indicating a relatively subdued reaction to the news of the protocol’s reactivation. Investors and users seem to have maintained confidence in Aave’s ability to address and resolve issues promptly, emphasizing the resilience of the decentralized finance ecosystem.
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