A bug in an older version of crypto lending protocol Aave is blocking users from interacting with Wrapped Ether (WETH), Tether (USDT), Wrapped Bitcoin (WBTC) or Wrapped Matic (WMATIC) pools on Aave V2 Polygon, preventing assets from being withdrawn from them, according to a May 19 proposal that attempts to fix the bug through a patch. The proposal says that users are currently unable to “supply more of those assets, borrow, repay, or withdraw.”
Although withdrawals are currently impossible, the team stated that funds are “perfectly safe,” as the bug can be fixed after a governance vote.
.@AaveAave the latest upgrade of ReserveInterestRateStrategy in Aave V2 (Polygon) has caused a temporary halt of the protocol, impacting assets worth ~$110M!
The root cause is the new ReserveInterestRateStrategy is only compatible with Ethereum, not compatible with Polygon. https://t.co/kg5696QNPo pic.twitter.com/Ze3zSBS8Ck— BlockSec (@BlockSecTeam) May 19, 2023
The bug only affects Aave V2 on Polygon. AaveV3, which is the most recent version, remains unaffected, as does V2 deployments to Ethereum or Avalanche.
The broken code arose because of a May 16 interest rate curve patch applied to all deployments of V2. The Polygon implementation of V2 uses a slightly different list of function definitions (called an “interface”) for its rate strategy contracts…
