Aave V2 deployment on Polygon halts; how this affects you

• Aave V2 iteration on Polygon has suffered a brief halt.
• AAVE’s shopping for stress has climbed within the final week.

Aave’s [AAVE] V2 iteration on Layer 2 (L2) community Polygon [MATIC] suffered a brief halt on account of a bug on 19 Might. This prevented Aave V2 Polygon customers from interacting with Wrapped Ether [wETH], Tether [USDT], Wrapped Bitcoin [WBTC], or Wrapped Matic [WMATIC] swimming pools on the protocol, inflicting property price about $110 million to be caught.

.@AaveAave the most recent improve of ReserveInterestRateStrategy in Aave V2 (Polygon) has induced a brief halt of the protocol, impacting property price ~$110M!
The foundation trigger is the brand new ReserveInterestRateStrategy is just suitable with Ethereum, not suitable with Polygon. https://t.co/kg5696QNPo pic.twitter.com/Ze3zSBS8Ck

— BlockSec (@BlockSecTeam) May 19, 2023

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In a proposal posted on the protocol’s governance web page on the identical day, this downside was brought on by a discrepancy between the V2 model used on Aave v2 Polygon (and Avalanche) and the model deployed on Ethereum [ETH].  

Particularly, there’s a distinction within the interface utilized by the LendingPool to name the speed technique of an asset. The rate of interest methods carried out for these property adhere to the interface of Aave V2 Ethereum however not V2 Polygon. In consequence, when the LendingPool tries to retrieve the present charge technique, this motion fails, and any subsequent actions depending on it, reminiscent of deposits or borrowing, additionally fail.

On 16 Might, when an rate of interest curve patch was utilized to all Aave V2 deployments, the variations in interfaces weren’t accounted for, culminating in a halt of the Polygon deployment on 19 Might.

In response to the brand new proposal, Aave DAO’s approval is being looked for code modifications particularly focused at fixing the problem within the Polygon model. The voting course of for this proposal is about to start on 20 Might and can stay open till 23 Might.

AAVE has seen progress within the final week

At press time, AAVE traded at $64.98 at press time. In response to information from CoinMarketCap, the governance token’s worth has rallied by 5% within the final week. 

The expansion in worth has been on account of a surge in AAVE’s community exercise throughout this era. In response to information from Santiment, the depend of each day addresses buying and selling the alt has since grown by 31%. 

Learn Aave’s [AAVE] Value Prediction 2023-24

Likewise, there was an uptick in new demand for the token because the depend of recent addresses created each day to commerce AAVE has climbed by 30% within the final week. 

Though key momentum indicators rested under their respective middle traces, they remained in an uptrend, suggesting that purchasing momentum was rising.

Supply: AAVE/USDT on TradingView