Published
6 months ago on
November 07, 2023
Table of Contents
Decentralized finance (DeFi) platform Aave paused several markets on the 4th of November after users reported an issue affecting a specific feature on the platform, according to a post on X.
The pause has impacted several markets, including the Aave v2 Ethereum Market and some assets on Aave v2 on Avalanche. Some assets on Polygon, Arbitrum, and Optimism have also been frozen.
Aave Reports Issues With Some Features
The announcement came after several community developers validated the features. In response, Aave announced it was implementing interim preventive measures. Aave alerted the community about the issue through a post on the 4th of November on X (formerly Twitter) and outlined the preventive measures taken. The pause affected several markets, including the Aave v2 Ethereum Market and some assets on Aave v2 on Avalanche. Additionally, some assets on Arbitrum, Polygon, and Optimism were also frozen.
The DeFi protocol also did not specify what caused the issue or what particular assets were impacted. The protocol also assured users that no funds were at risk in any of its markets.
“Today, we received a report of an issue on a certain feature of the Aave Protocol. After validation by community developers, the guardian has taken the following temporary prevention measure (no funds are at risk).”
Markets Not Impacted
According to the team at Aave, Aave v3 markets on Ethereum, Base, and Metis were not impacted by the issue. Furthermore, Aave v2 markets on Polygon and Avalanche were also not affected by the problem. The protocol further added,
“A governance proposal to restore the normal operation of the protocols will be submitted shortly. A detailed postmortem will be released once the issue is fully resolved.”
Users supplying or borrowing from the frozen assets in question can still withdraw and repay their positions. However, they cannot supply or borrow further assets until Aave solves the ongoing issue. The protocol noted that no action could be taken on the paused assets. So far, there is no indication that the problem has had an impact on the price of Aave’s native token, AAVE. Currently, the token is trading at the $97.6 mark, according to data from CoinMarketCap.
Aave (AAVE) Price Analysis
As we can see from the chart below, Aave is currently trading between the $97 and $98 mark. The price had seen a considerable rally on the 7th when the price rose from $95.38 to $99.75. However, it could not move past the resistance at the $100 level and fell back to $97.60. However, the price rallied once more, pushing above $100 and moving to $103. However, bearish sentiment took over again, pushing the price back in the red. As a result, AAVE dropped back below the $100 level, falling to $97, before mounting a small recovery and rising to its current price of $98.30.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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