Bug in Aave V2 Polygon Hampers User Access to Assets, Proposal Seeks Fix

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Key Takeaways

  • Approximately $110 million worth of assets are trapped in the affected contracts
  •  The proposal suggests implementing a patch to fix the bug specifically in the Polygon version

Aave, a popular crypto lending protocol, is facing a bug in an older version of its system on the Polygon network. The bug is causing inconvenience for users attempting to interact with certain pools, namely Wrapped Ether (WETH), Tether (USDT), Wrapped Bitcoin (WBTC), and Wrapped Matic (WMATIC), on Aave V2 Polygon. As a result, users are currently unable to supply additional assets, borrow, repay, or withdraw funds from these pools.

The issue arose after Aave implemented an upgrade to its V2 protocol on Polygon. This upgrade introduced new interest rate strategy contracts for WETH, WBTC, USDT, and WMATIC. However, these contracts are only compatible with Ethereum and not with Polygon. Consequently, approximately $110 million worth of assets have become trapped in the affected contracts, rendering them inaccessible for withdrawal.

To address the problem, a proposal has been put forward to the Aave DAO, the platform’s governing body. The proposal suggests implementing a patch to fix the bug specifically in the Polygon version. The Aave DAO is expected to vote on the proposal, with voting scheduled to take place from May 20 to May 23. If the proposal garners sufficient support, the fix will be deployed within approximately seven days.

While users currently face limitations on withdrawals, Aave has assured the community that their funds remain secure. The bug can be resolved once the governance vote approves the proposed fix. It is important to note that only Aave V2 on Polygon is affected, and newer versions, such as Aave V3, as well as deployments on Ethereum or Avalanche, are unaffected by the bug.

The bug emerged due to a recent interest rate curve patch applied to all V2 deployments on May 16. The implementation of V2 on Polygon differs slightly from Ethereum and Avalanche, particularly in the function definitions of rate strategy contracts. Unfortunately, the interest rate curve changes did not account for these differences, resulting in the bug exclusively affecting the Polygon deployment.

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Saniya Raahath
Saniya Raahath

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