Ethereum Aave V2 Market and Some Assets Paused — Team Says 'No Funds at Risk'.
'Temporary Precautions'
On November 4, the custodian of Aave, an open source, non-custodial liquidity protocol, temporarily suspended the Aave V2 Ethereum Marketplace and certain assets in Aave V2 on Avalanche. It also froze assets on Aave 3 on three chains, namely: Polygon, Arbitrum and Optimism. The move, framed as a “temporary precautionary measure,” was taken after the Aave team received reports regarding the protocol.
In an update shared via X (formerly Twitter), the Aave team emphasized that no user funds are at risk. The update adds that neither the Aave V3 markets on Ethereum, Base and Metis, nor the V2 markets on Polygon and Avalanche are affected by the reported issue. At the time the update was issued, Aave said analysis of what happened would be available when the issue was resolved.
“Governance proposals to restore normal operation of the protocol will be submitted soon. [A] detailed postmortem will be released once the issue is fully resolved,” the Aave team said.
The team also reminded Aave users who supplied or borrowed from frozen assets that they “can still withdraw or repay their positions.” However, due to the enforced pause in some Aave markets, users will only be able to supply or borrow more once the undisclosed issue has been resolved, the team added.
On X, some social media users complained about the freeze while others asked why the team apparently failed to provide any further updates. Meanwhile, one of the users asked why they couldn't pay or withdraw funds as per the team's announcement.
“Unable to repay USDC/ USDT or withdraw from Aave V3 on Avalanche chain. The button is gray. But above you said you can pay back/WD. Can you explain it? TY,” said the social media user.
