Aave Temporarily Freezes 17 Lending Markets

  • The temporarily frozen lending markets include YFI, CRV, ZRX,MANA, 1INCH, BAT, ENJ, AMPL, DPI. RENFIL, MKR, xSUSHI, sUSD, USDP, LUSD, GUSD, and RAI.
  • In order to improve its risk management, the protocol will no longer allow users to deposit or take loans with them on the platform.


Decentralized lending protocol Aave passed a governance vote on 27 November, and will now temporarily freeze lending markets for 17 tokens considered to be volatile and with low liquidity.

According to the proposal, not allowing users to deposit or take loans in the 17 assets was needed for the sake of risk management, with its authors pointing out to the lower risk tolerance of community members in these markets. The frozen markets are considered as “volatile” due to their low liquidity profiles on Aave, and their reinstatement will depend on future liquidity and usage levels.

The affected lending markets are Yearn Finance (YFI), Curve Finance (CRV), 0x (ZRX), Decentraland (MANA), 1inch (1INCH), Basic Attention Token (BAT), Enjin (ENJ), Ampleforth (AMPL), DeFi Pulse Index (DPI), renFIL (RENFIL), Maker (MKR), and xSUSHI. Five stablecoins have also been frozen, including sUSD, USDP, LUSD, GUSD, and RAI.

The proposal was made shortly after a failed attack on CRV on Tuesday last week. At the time, a trader had borrowed 92 million CRV (around $60 million) on Aave, which were then sold to lower the price of the token. The attacker suffered a price sqeeze when the token’s price rallied, and while the protocol was able to liquidate his short position, it accured a bad debt of $1.6 million.

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