Aave community proposes to temporarily suspend ETH lending before the Merge
The governance vote to approve the pause will commence on Aug. 30, 2022, and end on Sept. 2, 2022. With the Ethereum Merge on the way, the risk research and analysis team Block Analitica proposed a temporary pause in Ether (ETH) borrowing to mitigate the risks which may lead to a decentralized finance (DeFi) implosion in the Aave lending protocol during the Merge. The team pointed out the potential issue of high ETH utilization which may result in liquidations being hard or impossible and annual percentage yields (APYs) reaching negative figures. Furthermore, the uncertainties surrounding....
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