Crypto News

Justin Sun withdraws billions of dollars worth of crypto from Aave’s lending pools

Tip of the day… Best way to diversify your wealth

Have you been looking for a low-risk way to diversify your wealth portfolio? Then drop everything you’re doing right now and take a look at Stocks Profit. Stocks Profit is an award-winning algorithmic trader that helps you build more wealth by owning shares in the top-performing companies in the world. With it, you can gain unprecedented financial freedom by using its near-perfect trade suggestions to bet on stocks, oil, and other lucrative commodities. The stock market has been around for ages, but rare is the right tool to access it. Register for free to learn how Stocks Profit can help you make multimillion through passive investing.

Quick Take

Tron founder Justin Sun has withdrawn billions of dollars worth of crypto from DeFi lending platform Aave’s lending pools, according to blockchain data.

As a result, this has removed a significant amount of liquidity from the platform, triggering much higher interest rates.

The withdrawals may be a result of concerns over recent tweets between members of the Yearn community and those in the Aave camp. During a Twitter standoff, members of the Yearn community implied that Aave was vulnerable to a potential exploit.

Yearn founder Andre Cronje tweeted earlier Friday that “Aave is vulnerable to the same exploit” as the one that impacted Cream Finance on Wednesday, which resulted in the theft of $130 million worth of tokens.

“Maybe don’t bad mouth other projects while sitting on an 11 figure vulnerability,” tweeted Yearn core developer banteg. Banteg later specified that he believed the exploit has very specific liquidity requirements and was possible for 160 days in the past but is not currently viable.

Following the disclosures and the resulting fallout, Aave founder Stani Kulechov tweeted that the crypto community should stick together. “Lets work together, support each other and most importantly win together,” he wrote.

Aave considers a precautionary measure

Following the Twitter spat, Aave acknowledged that there have been concerns over a possible exploit for when xSUSHI is used as collateral in the Aave protocol. It is unclear if this is the same vulnerability to which the Yearn developers alluded.

Aave claims that it ran simulations that showed any attackers trying this exploit approach would end up losing money. Despite this, Aave has highlighted a proposal that has been made to disable functions related to xSUSHI as a precuationary measure.

Aave token holders are currently able to vote on the proposal through its governance platform.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

   

Source

Exit mobile version