Aave version 2 (V2) users are temporarily unable to access their funds stuck on the decentralized exchange’s deployment on the Polygon blockchain after a strategy containing a faulty bug went live last week.
Aave V2 Users Temporarily Unable to Access $120M on Polygon After Governance Bug
A temporary issue has arisen for some users of Aave version 2 (V2) on the Polygon blockchain. Their funds have become inaccessible due to a bug in a strategy that was recently implemented.
Aave is a decentralized finance (DeFi) protocol that enables token lending and borrowing on various blockchains including Ethereum, Polygon, and Avalanche. This compatibility across different blockchains sometimes leads to bugs, resulting in temporary disruptions and the inability to access funds.
The problem occurred after an upgrade to the “ReserveInterestRateStrategy” contract, according to security firm BlockSec.
Tokens affected by this issue include tether (USDT), bitcoin (BTC), ether (ETH), and polygon (MATIC). The core issue stems from the differences between the v2 versions of Aave used on Polygon (and Avalanche) and Ethereum, specifically regarding the interface used by the LendingPool to interact with the rate strategy of an asset.
While the new interest rate strategies align with Aave v2 Ethereum’s interface, they do not match v2 Polygon’s interface.
Consequently, when the LendingPool queries the strategy for the current rate, the call reverts, affecting actions such as depositing and borrowing.
A solution has been implemented through a governance proposal, allowing community members to vote and users to top up their funds on the network.
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