The lending markets were frozen right after its governance members passed a vote that aims to temporarily freeze assets considered to be volatile and have low liquidity. The assets included in the list are Yearn Finance (YFI), Curve Finance (CRV), 0x (ZRX), Decentraland (MANA), 1inch (1INCH), Basic Attention Token (BAT), Enjin (ENJ), Ampleforth (AMPL), DeFi Pulse Index (DPI), RENFIL, Maker (MKR) and xSUSHI.
Apart from these, the protocol also suspended the following stablecoins: sUSD, USDP, LUSD, GUSD and RAI. With the assets frozen, users cannot take loans on the assets or deposit their assets to the protocol.
According to the proposal, the aim of the move is to reduce the risk for Aave version 2 and promote the eventual migration to version 3. The proposal also pointed out the lower risk tolerance of community members at the moment. However, the authors of the proposal also highlighted that the next course of action which may be to either delist or relist the markets would depend on liquidity and usage levels.
Related: Mango Markets hacker allegedly feigns Curve short attack to exploit Aave
The governance proposal follows a failed $60-million attack on CRV using USD Coin (USDC) as collateral. The attack was unable to go through because of a wrong…
