Governance Bug Temporarily Blocks Aave V2 Users from $120M on Polygon

AI Games Airdrop is Live! Claim an Instant 10,000 AIG Tokens ($100 Value) for Free. AIG Listing on Bybit & Kucoin. Join the Airdrop On PlayAiGames.Online

Developers have assured that all funds are secure, and they are currently working on a governance proposal to fix the problematic strategy.

Certain users of Aave version 2 (V2) are currently facing a temporary issue where they cannot access their funds on the Polygon blockchain. This problem arose when a flawed bug was introduced in a strategy that was implemented last week.

Aave is a decentralized finance (DeFi) platform that enables users to lend and borrow tokens across different blockchains like Ethereum, Polygon, and Avalanche. However, due to the complex nature of supporting multiple blockchains, compatibility bugs can occur. These bugs may temporarily prevent users from accessing certain parts of the platform and result in funds being temporarily inaccessible.

Also Read This: Bakkt removes Aave, Avalanche, Compound, Filecoin, MakerDAO, and Uniswap from its listings

According to a tweet by security firm BlockSec, a recent upgrade to the “ReserveInterestRateStrategy” triggered the problem. This issue has impacted tokens like tether (USDT), bitcoin (BTC), ether (ETH), and polygon (MATIC).

The Reserve Interest Rate Strategy contract is an important part of Aave. It is responsible for calculating and applying interest rates to loans that users borrow from the platform.

Centered JavaScript

According to BDGLabs, a member of the Aave community, the issue stems from a difference in the way the v2 version of Aave is implemented on Polygon and Avalanche compared to Ethereum. Specifically, there is a variation in the interface used by the LendingPool to interact with the rate strategy of an asset.

The problem arises because the new interest rate strategies, which are designed for Aave v2 Ethereum, do not align with the interface of Aave v2 Polygon. As a result, when the LendingPool tries to retrieve the current rate from the strategy, this action fails, leading to the failure of related actions like deposits, borrowing, and so on.

A solution has already been implemented through a voting process involving community members and users. As per an Aave governance proposal, users have the ability to add more funds to the network.

As of Tuesday, other versions of Aave on Polygon are functioning without any issues. During the past 24 hours, AAVE tokens experienced a 2.7% increase, which is consistent with the overall rise in the market.

Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.



    A crypto enthusiast, Loves to write, Loves to explore and stay up-to-date about the latest developments in the crypto world. #Btc #Crypto #NFT

    View all posts

Leave a Reply

Your email address will not be published. Required fields are marked *