Aave has temporarily frozen lending markets for 17 tokens and stablecoins on Ethereum.
This comes after a massive short position on Aave’s CRV market resulted in a bad debt of $1.6 million.
This has aroused the vigilance of other DeFi projects, such as Compound.
Compound community has voted to set borrow caps on 10 non-stablecoin crypto collateral assets.
Based on this, the risk control department of Wing Finance once again evaluated the various long tails in Wing pools.
After analysis, they thought that the liquidity of YFI, xSUSHI, BAL in the market was insufficient. In order to avoid similar incidents of shorting CRV, it is recommended to close the Supply function of these assets.
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