Aave Pasued v2 Market on Ethereum and Freeze Assets in v3 Market on Arbitrum and Optimism

Aave paused a number of markets on Nov.4 after receiving reports of an issue affecting "a certain feature". The protocol has paused Aave v2 on Ethereum, along with freezing certain assets on Aave v3 on Polygon, Arbitrum, and Optimism.

Users supplying or borrowing from frozen assets can still withdraw and repay positions, but can't supply or borrow further assets until the issue is resolved. On paused assets, no action can be done until unpaused.

"Today we received a report of an issue on a certain feature of the Aave Protocol," Aave announced, adding that After validation by community developers, the guardian has taken the following temporary prevention measure (no funds are at risk)."

Aave emphasized that no funds were at risk on any of its markets.

"A governance proposal to restore the normal operation of the protocols will be submitted shortly. A detailed postmortem will be released once the issue is fully resolved," the protocol noted in the thread.