All Aave v2 markets are actually operational, the crew behind the non-custodial liquidity protocol introduced in a November 13 publish on X. This a day after v3 markets have been unfrozen following the approval from the group.
Aave is a platform the place customers can provide liquidity in trade for rewards whereas debtors are free to take loans whereas paying curiosity in a trustless surroundings.
Aave v2 Markets Unfrozen, Safety Is “Non-Negotiable”
Within the post, Aave mentioned the safety of the decentralized finance (DeFi) protocol stays a “precedence and is non-negotiable for the group.”
On November 4, Aave said they obtained a report “of a difficulty on a sure function.” After being validated, the protocol determined to take a step and pause the operation of their v2 markets on Ethereum. On the similar time, some v2 markets on Avalanche have been frozen. Even so, the v2 markets on Polygon have been unaffected.
Aave additionally froze operations on Aave v3 on Polygon, Arbitrum, and OP Mainnet. Nonetheless, v3 markets on Ethereum, Base, and Metis have been unaffected.
Whereas Aave v2 and v3 markets have been frozen, the protocol clarified that customers supplying or borrowing affected belongings might nonetheless withdraw and repay their positions however couldn’t provide or borrow extra. With these markets unfrozen, they will now proceed because it was earlier than.
Will Bulls Ease Previous $110?
The resumption of providers, wanting on the AAVE candlestick preparations within the each day chart, has not impacted costs. Nonetheless, the token is buying and selling at round 2023 highs and stays inside a bullish formation as optimistic merchants anticipate the uptrend to proceed.
Regardless of the uptrend, bulls have failed to interrupt above the $110 resistance stage. As it’s, this response stage marks August 2022 highs and has not been breached previously 15 months.
The token has greater than doubled at spot charges, rising from $50, a important assist stage marking January and June 2023 lows. For pattern continuation, there have to be a stable breakout above $110 and the $60 vary from the place costs have been shifting horizontally in a multi-month accumulation.
Nonetheless, it’s unclear how the token will react within the days forward and whether or not there will likely be extra upside momentum as liquidity will increase as exercise resumes on Aave v2 markets.
In keeping with DeFiLlama data, Aave is among the largest DeFi protocols, with over $6 billion in complete worth locked (TVL). Most of those belongings are locked in Ethereum, the place over $5.1 billion of tokens are below administration.
Characteristic picture from Canva, chart from TradingView