CDS Crypto News Aave V2 Users Temporarily Unable to Access $120M on Polygon After Governance Bug
Crypto News

Aave V2 Users Temporarily Unable to Access $120M on Polygon After Governance Bug

All funds remain safe and a governance proposal is underway to update the faulty strategy, developers said.

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Aave V2 Users Temporarily Unable to Access $120M on Polygon After Governance Bug

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

Aave V2 Users Temporarily Unable to Access $120M on Polygon After Governance Bug
Aave V2 Users Temporarily Unable to Access $120M on Polygon After Governance Bug 1

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.

Aave V2 Users Temporarily Unable to Access $120M on Polygon After Governance Bug
Aave V2 Users Temporarily Unable to Access $120M on Polygon After Governance Bug 2

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.

Aave V2 Users Temporarily Unable to Access $120M on Polygon After Governance Bug
Aave V2 Users Temporarily Unable to Access $120M on Polygon After Governance Bug 3

A solution has been implemented through a governance proposal, allowing community members to vote and users to top up their funds on the network.

To access more crypto news: cryptodataspace.com

Written by
Aziz KARTAL

Aziz Kartal is 21 years old. He is a student at the Gazi University, Department of Electrical and Electronical Engineering. He works as content writer, researcher and social media manager. He generally research about Web3, Blockchain Security and Cybersecurity.

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