Aave, one of the largest DeFi protocols in the market, has decided to stop its transactions for 17 altcoins. The central platform’s move comes after the collapse of FTX.
Aave stops trading for these 17 altcoins for security reasons
Aave management decided to suspend transactions for 17 altcoins in the voting that resulted over the weekend. The temporarily frozen lending markets include 12 Ethereum-based tokens and five stablecoins. The DeFi protocol had to step in that direction to protect itself from further attacks. Lending markets were frozen immediately after the vote. Related altcoins are as follows:
- Yearn.finance (YFI)
- Curve Finance (CRV)
- 0x (ZRX)
- Decentraland (MANA)
- 1inch (1INCH)
- Basic Attention Token (BAT)
- Enjin (ENJ)
- Ampleforth (AMPL)
- DeFi Pulse Index (DPI)
- Maker (MKR)
Apart from these, here is the list of stablecoins to be suspended:
- Pax Dollar (USDP)
- Liquidity USD (LUSD)
- Gemini Dollar (GUSD)
Decision plays an active role in Aave’s v3 transition
According to the proposal, the purpose of the move was to reduce the risks of Aave v2 and encourage the transition to v3. The proposal also pointed to the lower risk tolerance of community members at this time. However, the authors of the proposal also stressed that the next course of action, which may be to delist or relist markets, will depend on liquidity and utilization levels. The management proposal follows a failed $60 million attack on CRV using USD Coin.
The attack failed due to miscalculation of the liquidity levels of the decentralized protocol. However, contributors to the project have worked on the proposal to prevent further exploit attempts on the protocol. Despite the turbulence in the wider crypto market, the DeFi protocol has managed to raise $10 million in investments from various investors such as Bitfinex and Ava Labs. Last week, Cosmos-based ecosystem Onomy received funding to develop its new protocol that combines DeFi with exchange. cryptocoin.com We have covered the details in this article.
DeFi altcoin project continues to lose volume
Aave is one of the largest protocols in the market with its own unique DeFi tools. It also acts as the lending protocol for Ethereum. Its native token AAVE has been on the decline since FTX’s bankruptcy, accompanied by the overall market. It is currently trading at $59.45, down 6% from the last 24 hours. During the year, the TVL value reached $19 million. After the peak, it melted around 80% with the falling prices.
Aave’s biggest concern was the manipulation that took place on Curve last week. A large Aave whale was purchased in large quantity Curve. After that, the CRV price fell by over 30%. Aave management is now temporarily suspending 17 altcoins to avoid similar incidents.
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