Aave V2 Disabled The CRV Borrowing Function
Aave V2 Disabled The CRV Borrowing Function
In response to the recent mass attack on the leading DeFi platform, Curve Finance, Aave has swiftly taken action by approving an urgent proposal to disable CRV borrowing on Ethereum. The proposal, known as AIP-125, had been previously passed by the Aave governance, granting the protocol the authority to prohibit the borrowing function of specific assets during emergencies. The primary concern behind this decision is to protect users from suffering significant losses due to panic-driven liquidations of CRV loans.
As of the latest data, Aave Ethereum v2 version holds over 300 million CRV supply, with approximately 95% of it coming from CRV founder Michwill‘s supply. However, only around 35 million CRV has been borrowed so far. Users remain apprehensive about the possibility of Michwill’s massive CRV liquidation. The founder of Curve currently possesses 7,193,402 CRV, valued at approximately $4.6 million. Nevertheless, there have been efforts to mitigate the potential impact, with Michwill having already paid off a portion of the debt within the last six hours. The recent attack on Curve Finance has exposed vulnerabilities in the project’s stablepool pools, specifically those using the Vyper 0.2.15 programming language. The attack has been repeated and has raised concerns about the safety of other protocols using Vyper.
