Bug in Polygon-based smart contracts blocks the withdrawal of funds

Reportedly voting for a new proposal will continue till May 23, 2023

Experts believe the funds can’t be withdrawn but they are “perfectly safe.”
Experts believe the funds can’t be withdrawn but they are “perfectly safe.”

With insights from a proposal made on May 19, 2023, a bug present in the Avae, an older version of a crypto lending protocol, is stopping users from withdrawing Wrapped Ether (WETH), Tether, Wrapped Bitcoin (WBTC) or Wrapped Matic (WMATIC) pools on Aave v2 Polygon, a protocol for fixing bug, stated Cointelegraph. It is believed that users are unable to “supply more of those assets, borrow, repay, or withdraw.”

As reported by Cointelegraph, the funds can’t be withdrawn but they are “perfectly safe.” It is expected that the bug can be fixed after the governance vote.

“The latest upgrade of ReserveInterestRateStrategy in Aave V2 (Polygon) has caused a temporary halt of the protocol, impacting assets worth ~$110M! The root cause is the new ReserveInterestRateStrategy is only compatible with Ethereum, not compatible with Polygon.,” BlockSec, a blockchain security platform, tweeted. 

Sources revealed that the new plan needs the approval of Aave DAO for changing the code of the Polygon version for solving the current issue. Furthermore, voting started on May 20, 2023 and will continue till May 23, 2023, Cointelegraph concluded. 

(With insights from Cointelegraph)

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First published on: 22-05-2023 at 18:37 IST