Decentralized finance (DeFi) protocol Aave has announced that it is temporarily suspending lending markets for 17 tokens to fend off volatility risks and market manipulations.
Aave, in total on Ethereum 12 tokens and 5 stablecoin for temporarily frozen lending markets. In the statement made, the reason for the suspension was suggested as weak liquidity and volatility risks that may arise from market manipulations. The decision was presented to the Aave community a few days ago and was activated after it was accepted by the community.
Among assets with frozen transactions yearn.finance (YFI), Curve Finance (CRV), 0x (ZRX), Decentraland (MEANING), 1inch (1INCH), basic attention Token (BAT), Enjin (ENJ), Ampleforth (AMPL), DeFi pulse Index (DPI), RENFIL, maker (MKR) and xSUSHI took place. However, the protocol sUSD, Pax dollars (USDP), liquidity USD (LUSD), Gemini dollars (GUSD) and RAI It also suspended its stablecoins.
Because the assets in question are frozen, users cannot get loans on assets or deposit their assets into the protocol.
Aave’s concern about this liquidity manipulation may be due to the manipulation on Curve Finance recently. As it will be remembered, at the same time as a CRV loan drawn by a whale by selling openly as well as short taking a position It was claimed that it was planning to make a profit and there was great price movement.