Aave V2 Polygon Has Over $100M Stuck Because of Bug

Aave Users Unable to Access Over $100M in Assets Due to Bug


A bug in decentralized Finance (DeFi) lending protocol Aave V2 on the Polygon network has made it impossible for users to interact with about $110 million worth of assets on the platform.

Blockchain security firm BlockSec reported on May 19 that the problem was due to the ReserveInterestRateStrategy contract deployed on Polygon. The upgrade was intended to enable a more efficient interest rate curve on Aave V2 and optimize the platform’s utilization.

AAVE Incompatible Update on Polygon (Source: BlockSec)

However, due to its incompatibility with the network, Aave users cannot interact with their assets on the protocol. This means users can’t borrow, withdraw, repay, or supply more of these assets to the protocol as every call reverts.

Funds Remain Safe

Developers have acknowledged the problem noting that only Aave V2 on Polygon was affected. The V2 on Ethereum and Avalanche are working perfectly, and so is the V3 protocol.

Binance

The developers also assured users that their funds, including the affected assets, were safe.

While the problem is not a safety issue, users cannot fully interact with the assets until the problem is fixed. The only way this can be achieved is through governance.

Aave is Working on Solution

A new governance proposal has been submitted to fix the issue — the Aave DAO will start voting on the proposal later today.

“Considering governance times, if approved, the fix will be applied in approximately 7 days from now: 1 day of delay to start voting, 3 days of voting, 1 day of timelock on Ethereum, and 2 extra days of timelock on Polygon,” part of the proposal reads.

This incident further highlights how complex DeFi can be, with different Ethereum Virtual Machine-compatible (EVM) chains having their peculiarities.

AAVE Price Performance
AAVE Price Performance (Source: BeInCrypto)

Aave is among the most prominent DeFi protocols due to its many users. The total value of assets locked (TVL) on the crypto lending protocol sits at $5.18 billion, according to Defillama. Aave V2 accounts for most of this TVL with $3.72 billion.

Meanwhile, the news has had minimal impact on AAVE’s price performance. The token is up 0.1% in the last 24 hours, trading for $64.85 as of press time, according to BeInCrypto data.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

You have not selected any currency to display

Pin It on Pinterest

Crypto-Moon
Blockonomics
Crypto-Moon
Aave Users Unable to Access Over $100M in Assets Due to Bug
Binance
AAVE Price Performance
Fiverr
Crypto ETFs won’t lose ‘their luster’ as wallet adoption grows — Cathie Wood
BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI, HYPE, LINK
How to Spot the Next Big Crypto Gem in 2025
Is the Internet Capital Markets Trend Over? 80% Drop in Volume Raises Alarm
SEC delays decision on Ether staking and XRP ETFs, as analysts expected
Binance Alpha To List Tokyo Games Token (TGT): Here’s Everything To Know
Cudo Miner
Paxful
Durov blocked from attending Oslo Freedom Forum — Human Rights Foundation
Same Prompt, Different Laura: AI Responses Reveal Racial Patterning
Industry exec sounds alarm on Ledger phishing letter delivered by USPS
Ethereum Holder Sold Over $570 Million in 48 Hours – What’s Next for ETH?
Crypto ETFs won’t lose ‘their luster’ as wallet adoption grows — Cathie Wood
Durov blocked from attending Oslo Freedom Forum — Human Rights Foundation
Same Prompt, Different Laura: AI Responses Reveal Racial Patterning
Industry exec sounds alarm on Ledger phishing letter delivered by USPS
Ethereum Holder Sold Over $570 Million in 48 Hours – What’s Next for ETH?