In the wake of a security issue exposed earlier this month, Aave version 2 and 3 markets have been suspended again and resumed standard features, marking recovery for the decentralized lending protocol. No funds have been affected.
The vulnerability exposed on November 4 affected several credit markets in Aave V2 on Ethereum and Aave V3 on blockchains, including Optimism, Arbitrum, Avalanche and Polygon. The issue led to immediate action from the Aave DAO. In response to the problem, the DAO has temporarily disabled the stable interest rate lending feature, a measure to prevent any possible exploitation.
Yesterday, Aave announced the restoration of the v3 markets to full functionality. Users can once again deposit, repay, initiate and close loan positions, with the protocol running at full capacity. “The affected Aave V3 markets have been unaffected by the Community Guardian following the implementation of the governance proposal. Thanks to the Aave DAO for their quick action,” the project said declared.
Today the v2 markets were also reactivated, putting an end to the matter. “The Aave V2 markets have now been fully reactivated. The vulnerability disclosure event has now ended. Everything has been resolved and no user funds have been lost.” noted Marc Zeller, Aave employee and founder of Aave Chan.
Since several third parties have forked Aave, the DAO has until now withheld specific details about the vulnerability to protect those protocols. Detailed information about the vulnerability will be released by the DAO in due course.
Updated with information that Version 2 lending markets have also been reactivated.
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