Aave Access Issue: These Altcoins Are Affected!

Some Aave version 2 (V2) users have experienced trouble after the version with a bug went live last week. Currently, users are temporarily unable to access their funds trapped in the decentralized exchange’s Polygon Blockchain. Apart from that, some altcoin investors were also affected by the Aave issue. Here are the details…

Aave bug affected many investors

The decentralized finance (DeFi) protocol Aave allows users to lend and receive tokens on their various blockchains such as Ethereum, Polygon, and Avalanche. The extent of this sometimes results in compatibility errors being introduced, parts of the platform being temporarily inaccessible to users, and funds being stuck. Decentralized finance (DeFi) protocol Aave, known for lending and borrowing capabilities on various blockchains including Ethereum, Polygon, and Avalanche, faced a setback last week. Aave version 2 (V2) users on the Polygon Blockchain faced difficulties accessing their funds due to an erroneous error in a recently deployed strategy.

The bug affected popular tokens such as Tether (USDT), Bitcoin (BTC), Ethereum (ETH), and Polygon (MATIC). While this compatibility issue temporarily interrupted user access, the Aave community quickly addressed the issue and implemented a fix. Security firm BlockSec has announced that the “ReserveInterestRateStrategy” upgrade caused the access issue experienced by Aave V2 users on the Polygon Blockchain. The ReserveInterestRateStrategy contract is a crucial component of Aave, which is responsible for calculating and applying interest rates to loans borrowed. However, due to differences in the interface used by LendingPool, the version of AaveV2 on Polygon and Avalanche is slightly different from AaveV2 on Ethereum.

BDGLabs also made a statement

To shed some light on the matter, BDGLabs, a member of the Aave community, explained that the disparity between the Ethereum and Polygon versions caused the compatibility error. While the new interest rate strategies implemented on AaveV2 Ethereum adhered to the correct interface, the same strategies were not compatible with the interface of AaveV2 Polygon. As a result, when LendingPool questioned the strategy for the current interest rate, the call would return, affecting actions such as depositing, borrowing, and other related functions.

Meanwhile, a governance proposal indicates that a fix voted on by community members is already in place and users can replenish funds on the network. Because Aave promptly responded to the issue by proposing a governance vote to fix the bug and restore users’ access to their funds. Community members and users voted in favor of the proposed fix with the collaborative nature of the Aave ecosystem. The implementation of the solution allows users to once again replenish their funds in the Polygon network. Other versions of Aave on the Polygon network continue to run smoothly as of Tuesday. The cryptocurrency has gained 2.7 percent over the past 24 hours, in line with a wider market bounce.