Home Blockchain After a brief $60 million heist, Aave recommends governance reforms.

After a brief $60 million heist, Aave recommends governance reforms.

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After a brief $60 million heist, Aave recommends governance reforms.

Source: blockchain.news

On November 23, one day after Mango Markets exploiter Avraham Eisenberg attempted to exploit the AAVE decentralized financial protocol through a series of smart shorts, project contributors came up with a variety of ideas to deal with the consequences of the incident. These ideas included a variety of different ways to deal with the aftermath of the incident. These suggestions included a wide range of possible approaches to address the consequences of the event in question.

According to protocol engineer Llama and financial modeling platform Gauntlet, both implemented on Aave, Llama reported that the user had been liquidated, albeit at the expense of $1.6 million in bad debt, most likely the result of a slippage. In other words, the user was liquidated at the expense of the platform. In other words, the user was expelled from the platform at the expense of the service. Avenue is the street that houses both places.

Going forward, Llama’s proposal calls for the unpaid debt to be paid off with money from the Gauntlet bankruptcy fund and the Ave Treasury.

Another suggestion Gauntlet made is to temporarily freeze a list of token markets in Aave v2, which would include the Curve DAO token. This particular token would be included in this list. This is the second recommendation that has been offered.

The day before, Eisenberg made an effort to cause a liquidity crisis at Aave by cutting a large amount of CRV, which had no liquid market on the platform. This action was done in an attempt to take advantage of the situation. The very high slippage that occurred (up to 90%) forced smart contracts to buy back shares at a loss.

Despite this, the transaction was unsuccessful due to the fact that Eisenberg settled with a much smaller lag than anticipated.

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