Aave V3 Is Frozen On The Fantom Blockchain Due To Security Concerns

Aave V3 developers are proposing to “severe” all ties with Fantom out of concern that it will pose a security risk to the project.

AAVE V3 freezes on Fantom

On August 2nd, Marc Zeller, lead developer of crypto lending platform Aave, proposed freezing the Aave V3 version on the Fantom blockchain.

Zeller that explains the reason for removing Fantom is that after recent cross-chain hacking events that have caused severe losses, the Aave community should weigh the risks/benefits of keeping Aave V3 live on Fantom because the network relies heavily on cross-chain bridges.

Besides, the business of Aave V3 Fantom has not gained significant traction, with the current market size of $9 million and $2.4 million of debt. Whereas Aave currently has a total lockout value of $3.48 billion, Fantom on Aave V3 only generates around $300 per day, of which $30 goes to Aave’s Reserve.

The proposal therefore called for Aave to freeze all funds in the project’s stockpile when deploying Aave V3 on Fantom. This action will protect users by disabling the ability to deposit or borrow assets in AaveV3 on Famtom, while still allowing repayment, liquidation, withdrawal, and interest rate changes.

In addition, the freezing process will not interfere with any direct transfers to any aToken contract. Essentially, aTokens are Aave interest-bearing tokens that are minted when a deposit is made and then burned when redeemed.

After five days, the community vote will end to determine the future of Aave V3 Fantom.

This morning (August 3), the Solana community is also shocked by the discovery of a security hole, the wallets are being withdrawn massively, Solana also hinted that Fantom wallet users should be careful. However, it seems that not only Fantom but a few other applications on Solana have also become targets.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Foxy

CoinCu News