Aave V2 deployment on Polygon halts; how this affects you

Aave V2 iteration on Polygon has suffered a short lived 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 short lived halt attributable to a bug on 19 Could. 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 belongings value about $110 million to be caught.

.@AaveAave the newest improve of ReserveInterestRateStrategy in Aave V2 (Polygon) has prompted a short lived halt of the protocol, impacting belongings value ~$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 drawback 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 belongings adhere to the interface of Aave V2 Ethereum however not V2 Polygon. Consequently, when the LendingPool tries to retrieve the present charge technique, this motion fails, and any subsequent actions depending on it, resembling deposits or borrowing, additionally fail.

On 16 Could, 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 Could.

In line with the brand new proposal, Aave DAO’s approval is being looked for code adjustments particularly focused at fixing the problem within the Polygon model. The voting course of for this proposal is ready to begin on 20 Could and can stay open till 23 Could.

AAVE has seen progress within the final week

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

The expansion in value has been attributable to a surge in AAVE’s community exercise throughout this era. In line with information from Santiment, the rely 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 rely of latest addresses created each day to commerce AAVE has climbed by 30% within the final week.

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