Aave temporarily halts lending markets for 17 Ethereum-based tokens

Popular DeFi platform, Aave, has temporarily halted lending markets for 17 Ethereum-based tokens comprising 5 stablecoins as the market situation of these assets is currently volatile.

This decision was taken after a trader recently borrowed a total of 92 million CRV from Aave using $58 million in USDC as collateral, affecting its value for everyone else and leaving the open source liquidity protocol with around $1.6 million in debt.

1/6 We want to address the cycle of liquidations that occurred in the CRV pool on the Aave Protocol today. The liquidations were successful (and worked as designed), but unfortunately, the size of the position left some excess debt within the protocol.

— Aave (@AaveAave) November 22, 2022

To this effect, Llama and Chaos Labs issued a proposal to pause these tokens as an extra precaution, which the community approved with 100% votes in favor.

Concerned lending markets include, 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.

The post Aave temporarily halts lending markets for 17 Ethereum-based tokens appeared first on WAYA.

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