An unexpected flaw in an older variant of the digital currency lending platform, Aave, is stymieing user transactions involving Wrapped Ether (WETH), Tether, Wrapped Bitcoin (WBTC) and Wrapped Matic (WMATIC) pools on Aave v2 operating on Polygon. This defect reportedly withholds these digital assets in the contracts, hindering withdrawal attempts, as indicated in a May 19 proposal that advocates a remedial patch for this issue. Currently, the proposal details the inability of users to supply additional assets, initiate borrowings, settle dues, or perform withdrawals.
Despite the withdrawal difficulties, the Aave team assured users that their funds remain safe and the glitch can be remedied following a governance voting process.
Bug Confined to Aave v2 on Polygon
The glitch is exclusive to Aave v2 operating on Polygon. Other deployments like Aave v3, the latest edition, and v2 versions deployed on Ethereum or Avalanche platforms are untouched by this anomaly.
The code anomaly was triggered by an interest rate curve patch initiated on May 16 across all v2 deployments. The Polygon-specific v2 has a subtly diverse roster of function definitions (termed as an “interface”) applicable for its rate strategy contracts. This is distinct from those applied in Ethereum and Avalanche implementations. Unfortunately, this discrepancy was overlooked during the interest rate curve modifications, leading to the formation of the glitch exclusive to Polygon’s deployment.
Proposed Solutions and Future Steps
The recent proposal encourages Aave’s governing entity, Aave DAO, to endorse coding amendments limited to the Polygon version to rectify the patch. Per the proposal, the voting process is slated to commence on May 20 and extend until May 23.
Aave has gained significant recognition for its innovative flash loan feature that enables users to procure cryptocurrency, execute trades and repay the loan within the same block, eliminating the need for collateral. Initially launched on Ethereum, Aave has broadened its reach to include other networks over recent years. On April 17, Aave governance sanctioned the protocol’s deployment on zkSync Era, a layer-2 Ethereum scaling protocol leveraging zero-knowledge proof technology. As of May 8, Aave v3 has been rolled out to the Metis network, an additional Ethereum layer 2.