March 29, 2024

Aave lending protocol freezes 17 tokens due to low liquidity

Article Reading Time:
1 min.

Aave lending protocol freezes 17 tokens due to low liquidity

The Aave protocol intends to secure itself by re-validating some crypto assets before a possible transition to a new version.

Decentralized Protocol Board MembersFor lending, Aave held a vote, as a result of which it was decided to freeze some unstable tokens that have low liquidity. The list included Curve Finance (CRV), 1inch (1INCH), Decentraland, Yearn Finance (YFI) xSUSHI, 0x (ZRX) and others. The protocol also suspended several stablecoins: USDP, sUSD, GUSD, RAI and LUSD.

While assets are frozen, users will not be able totake out loans on these assets or enter your assets into the protocol. This is reportedly being done to aid the second version of Aave and the possible transition of the protocol to a third version. The statement said the move was not welcomed by all community members. However, the authors of the proposal stated that the next step would be to re-verify the assets and list or delist the tokens from the platform - everything will depend on the liquidity and popularity of the asset.

The offer has appeared
immediately after an attempt to hack the protocol - a hackerunder the username Avraham Eisenberg attempted to borrow 40 million CRV tokens on Aave in order to simultaneously sell them on the market and reduce the price of CRV, causing the liquidation of short positions on the token. However, the scam failed.

Previously, the decentralized autonomous organization Panda DAO announced that it may cease operations due to problems with internal project management and lack of sufficient funding.