$110M Worth of Assets Can't Be Withdrawn from Aave V2 on Polygon due to Bug

Aave's recent upgrade in the V2 protocol on Polygon has caused an issue with the new interest rate strategy contracts applied to $WETH, $WBTC, $USDT and $WMATIC, not allowing users to perform actions involving these assets. It led to assets worth around $110 million stuck in the contracts and couldn't be withdrawn.

The cause to the issue is that the new ReserveInterestRateStrategy contract is only compatible with Ethereum, not compatible with Polygon. According to Aave, only V2 on Polygon is affected, and all the affected assets are safe.

A governance proposal regarding fixing the issue has been submitted, and Aave DAO will soon start voting for it. Should it pass, the fix will be deployed and will be applied in approximately 7 days from now.

TokenInsight is dedicated to covering the most important and cutting-edge trends in the world of crypto. If you have information to share with us, please feel free to contact our email news@tokeninsight.com. Your trust will be well respected.