Aave temporarily freezes lending markets to fend off further attacks

Decentralized liquidity protocol Aave has temporarily suspended lending markets for 17 tokens to fend off volatility risks that could lead to further attempts at market manipulation. Lending markets were frozen right after its governance members passed a vote that aims to temporarily freeze assets considered to be volatile and have low liquidity. The assets included in the list are, Curve Finance (CRV), 0x (ZRX), Decentraland, 1inch (1INCH), Basic Attention Token (BAT), Enjin (ENJ), Ampleforth (AMPL), DeFi Pulse Index (DPI), RENFIL, Maker and xSUSHI. Apart from these, the protocol also suspended the following stablecoins: sUSD, Pax Dollar (USDP), Liquidity USD (LUSD), Gemini Dollar (GUSD) and RAI. With the assets frozen, users cannot take loans on the assets or deposit their assets to the protocol. According to the proposal, the aim of the move is to reduce the risk for Aave v2 and promote the eventual migration to v3. The proposal also pointed out the lower risk tolerance of community members at the moment. However, the authors of the proposal also highlighted that the next course of action, which may be to either delist or relist the markets, would depend on liquidity and usage levels.

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