On Tuesday, Marc Zeller, integration lead at decentralized finance (DeFi) borrowing and lending protocol Aave, proposed to freeze the platform’s v3 Fantom market. Created in 2018, Fantom is a directed acrylic graph sensible contract platform that gives DeFi providers and on which Aave is at present bridged.
Zeller defined the rationale for eradicating the Fantom bridge:
“After the Harmony bridge event and the recent Nomad bridge exploit, the Aave community should consider the risk/benefits of keeping an active Aave V3 market on Fantom as this network is dependent on any swap (multichain) bridge.”
Zeller additional defined that the Aave v3 Fantom market didn’t acquire noticeable traction, with a present market dimension of $9 million and $2.4 million of open borrowing. In comparability, the Aave protocol has a complete worth locked of $3.48 billion. Meanwhile, the Fantom market on Aave solely generates roughly $300 per day for the borrowing-lending protocol, of which $30 goes to the Aave Treasury.
If handed, the Aave Improvement Protocol would enable customers to repay their money owed and withdraw however block additional deposits and borrowings on this market. After 5 days, a neighborhood vote will probably be held to find out the long run of Aave v3 Fantom. The Aave group wrote:
“The risk of exposing users to potentially losing millions of $ due to causes exterior to intrinsic Aave security is considered not worth the $30 of daily fees accrued by the Aave treasury.”
Related: Backlash as Harmony proposes minting 4.97B tokens to reimburse victims
Multichain bridging, whereas praised by some as a pinnacle of interchain communications, has been criticized by skeptics comparable to Vitalik Buterin for its supposed fragility. Earlier on Tuesday, the Nomad token bridge was drained for $190 million after hackers found a single code exploit that anybody might replicate, resulting in a “decentralized robbery” as different customers joined in on the preliminary hacker’s siphoning of funds.
