SNEAK PEEK

• Aave users on the Polygon have encountered difficulties accessing their funds.
• An upgrade to the “ReserveInterestRateStrategy” caused this unfortunate situation.
• Affected users are encouraged to stay informed through official channels.

In a recent development, Aave version 2 (V2) users on the Polygon blockchain have encountered difficulties accessing their funds due to a bug in the decentralized exchange’s deployment. Aave, a renowned decentralized finance (DeFi) protocol enabling token lending and borrowing across multiple blockchains like Ethereum, Polygon, and Avalanche, occasionally faces compatibility issues, resulting in temporary platform inaccessibility and trapped funds.

Last week, an upgrade to the “ReserveInterestRateStrategy” caused this unfortunate situation, as reported by security firm BlockSec. Notably, prominent tokens like tether (USDT), bitcoin (BTC), ether (ETH), and polygon (MATIC) have been affected by this glitch.

.@AaveAave the latest upgrade of ReserveInterestRateStrategy in Aave V2 (Polygon) has caused a temporary halt of the protocol, impacting assets worth ~$110M!
The root cause is the new ReserveInterestRateStrategy is only compatible with Ethereum, not compatible with Polygon. https://t.co/kg5696QNPo pic.twitter.com/Ze3zSBS8Ck

— BlockSec (@BlockSecTeam) May 19, 2023

The root cause of the problem lies in the variance between the v2 versions utilized on Aave V2 Polygon (and Avalanche) and Aave V2 Ethereum. According to BDGLabs, an active member of the Aave community, a minor discrepancy exists in the interface employed by the LendingPool to interact with the rate strategy of an asset due to legacy reasons.

This compatibility issue has temporarily disrupted Aave V2 Polygon users, with their funds becoming momentarily inaccessible. While the bug persists, affected users eagerly await a resolution from the Aave development team.

The incident highlights the challenges faced by DeFi protocols operating across multiple blockchains. As the ecosystem expands and evolves, ensuring seamless compatibility among different versions becomes crucial to maintain user trust and platform stability. Aave’s commitment to rectifying the bug promptly demonstrates its dedication to providing a reliable and secure DeFi experience.

As the Aave team works diligently to address the bug, affected users are encouraged to stay informed through official channels and await further updates. The incident serves as a reminder of the rapidly evolving nature of decentralized finance and the importance of meticulous testing and review processes to safeguard user funds and platform integrity.

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• Source: https://investorbites.com/aave-v2-compatibility-issue-hinders-access-to-funds-on-polygon/