In the early morning of November 5th, the lending platform Aave unexpectedly announced the temporary suspension of some features and services due to the discovery of vulnerabilities in their V2 and V3 product versions.
Specifically, the V2 version on Ethereum will temporarily halt operations. Additionally, some V2 assets on Avalanche have also encountered issues. For the V3 version, certain assets on Polygon, Arbitrum, and Optimism will be temporarily frozen as a precautionary measure.
However, Aave assures users that their assets remain secure. The V3 version on Ethereum, Base, Metis, and the V2 version on Polygon and Avalanche are not affected by the vulnerabilities.
Currently, Aave is working to fix the issues and restart these products. The project emphasizes that assets listed as “frozen” mean they will not accept new supply (deposits) and borrow (loans) requests. Users who have deposited or borrowed previously can still withdraw or repay their loans as usual.
In addition, there is a concern that the vulnerability may appear in projects that have forked from Aave V2 and V3 on other blockchains. However, the Aave team has only recommended that these forked versions “disable the fixed interest rate borrowing feature.”
Aave is a leading lending-borrowing protocol in the DeFi space, particularly on Ethereum, with a Total Value Locked (TVL) at the time of writing this article of $5.6 billion across various V2 and V3 pools, ranking fourth in the DeFi industry.
Fortunately, AAVE’s price has not experienced significant fluctuations in response to this incident. At the time of writing, AAVE is trading around $88.