A major DeFi lending platform, Aave, is addressing security issues with a community vote starting on Nov. 8 and ending on Nov. 11.
The proposal, presented by BGD Labs, aims to fix vulnerabilities in Aave’s v2 and v3 deployments and reactivate markets paused on Nov. 4. The security concerns led to a temporary halt on stable borrowing and freezing certain assets.
To ensure safety, the proposal includes measures to stop new stable debt tokens from being created. BGD Labs, along with Aave Companies and Certora, have reviewed and tested the proposal’s code.
Aave’s response came after security concerns were reported on Nov. 4. They paused various markets across their deployments, including on Ethereum and other networks like Polygon, Arbitrum, and Optimism.
BGD Labs also introduced a “Liquidations Grace Sentinel” to delay liquidations, allowing users to adjust their positions when the frozen assets are unfrozen. Aave’s native token, AAVE, is showing a stable trend in response to these developments.
Also Read: Aave Holders Vote on Governance Proposal for ETH Conversion
Author
Ronak is a dedicated content writer with a keen eye for detail and a passion for blockchain and cryptocurrency. His interest in these fields was sparked through his work, and he continues to expand his knowledge in these areas. He loves to watch anime and binge watches during his free time.
