The decentralized finance (DeFi) platform Aave has temporarily halted activity in several of its markets as of November 4th, following the detection of a problem with a particular feature, as stated in a message on X (previously known as Twitter).
This interruption has spread across various networks, encompassing the Aave V2 Ethereum Market and select assets within Aave V2 on Avalanche. Moreover, specific assets hosted on Polygon, Arbitrum, and Optimism are currently inaccessible.
“A report concerning an issue with a certain aspect of the Aave Protocol was brought to our attention today,” Aave disclosed, noting that community developers had verified the issue and the guardian had implemented a provisional protective measure, ensuring that no funds are jeopardized.
Aave withheld details about the nature of the issue or the affected features and assets. Nonetheless, Aave’s announcement highlighted that the safety of funds across its markets remains uncompromised.
The announcement clarified that the problem does not extend to the Aave V3 markets on Ethereum, Base, or Metis, and that the Aave V2 markets on Polygon and Avalanche remain unaffected.
Aave also mentioned that a governance proposal to reinstate normal operations is forthcoming and that a thorough analysis will be shared upon complete resolution of the problem.
While assets are frozen, users who have supplied or borrowed can still withdraw and repay their positions, but new supplying or borrowing is on hold until the matter is resolved, Aave pointed out. No further operations are possible with the paused assets.
There seems to be no impact of this situation on the trading value of Aave’s native token, AAVE. At the time of reporting, AAVE’s price was listed at $89.10, showing a minor decline of 1.54%, as per the data from CoinMarketCap.