Aave devs propose freezing Fantom integration, citing lack of traction and potential vulnerability

Marc Zeller (integration lead at Decentralized Finance (DeFi), borrowing and lending protocol Aave), proposed Tuesday to freeze the platform’s v3 Fantom Market. Fantom was created in 2018 and is a directed acrylic smart contract platform. It provides DeFi services. Aave is currently connected to it.

Zeller explained why the Fantom bridge was removed.

“After the Harmony bridge incident and the recent Nomad Bridge exploit, the Aave Community should consider the risks/benefits to keeping an active Aave market on Fantom because this network is dependent upon any swap (multichain). bridge.”

Zeller explained further that the Aave V3 Fantom market didn’t gain significant traction with a market size of $9M and $2.4M of open borrowing. The Aave protocol, however, has a total value of $3.48 trillion. The Fantom market on Aave generates only $300 per day for the borrowing protocol. $30 goes to Aave Treasury.

The Aave Improvement Protocol, if passed, would allow users to repay debts, withdraw money from the market but not make any further borrowings or deposits. A community vote will take place after five days to decide the future of Aave V3 Fantom. This is what the Aave team wrote

“The risk of users potentially losing millions of dollars due to causes outside of intrinsic Aave security are not worth the $30 daily fees accrued to the Aave Treasury.”

Related: Backlash as Harmony proposes the minting of 4.97B tokens in order to reimburse victims

While multichain bridging is a laudable feat of interchain communication, it has been criticised by Vitalik Buterin and other skeptics for its apparent fragility. The Nomad token bridge was depleted for $190 million earlier Tuesday after hackers discovered a single code vulnerability that anyone could duplicate. This led to a “decentralized theft” in which other users participated in the hacker’s siphoning.

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