Aave, one of the largest protocols in decentralized finance (DeFi), can freeze BUSD in its reserves.
The U.S. Securities and Exchange Commission (SEC) licensed Binance today BUSD stablecoin took action to file a lawsuit against the exporter Paxos.
The Aave community, which took action after this event, A new proposal for freezing BUSD presented.
aave; with different users through smart contracts lend/receive And to be able to stake can be used for.
Community member MarcZeller presents the proposal. Paxos is now BUSD will not produce, hence the supply of BUSD As of April 2023 starting to decrease will eventually reset and this could hurt arbitrage opportunities, he said.
After this stage, BUSD is no longer “No opportunity to grow” highlighting user, for Aave The most logical step to take is to freeze BUSD reserves. says it is.
Events in terms of BUSD do not pose a direct risk for the Aave protocol. For this reason, no hasty action will be taken on the proposal in question.