The popular DeFi platform Aave temporarily halts lending markets for 17 Ethereum-based tokens comprising 5 stablecoins as the market situation of these assets is currently volatile.
Llama and Chaos Labs issued a proposal to pause these tokens as an extra precaution, and the community approved with 100% votes in favor.
For the sake of risk management, the Aave protocol prohibits users from depositing these assets or borrowing loans using them.
The concerned lending markets are yearn.finance, Curve DAO, 0x, Decentraland, 1inch, Basic Attention Token, Ampleforth, DeFi Pulse Index, renFIL and Maker, Enjin, xSUSHI and five stablecoins are sUSD, GUSD, RAI, USDP, and LUSD.
This development came after a trader recently borrowed a total of 92 million CRV from Aave using $58 million in USDC as collateral. CRV’s value was affected during the event.
The size of the short position left some excess debt within the protocol and left Aave with a & 2.64 million CRV, around $1.6 million debt.
The protocol did take a dig at centralized firms by tweeting, “Most importantly, today’s events are in contrast to those we have seen with centralized entities in the space – the transactions were entirely traceable and auditable on-chain, providing transparency for users and the community.”
Also Read: Aave Asks Members to Commit to Ethereum PoS Transition
