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 the moment bridged.
Zeller defined the rationale for eradicating the Fantom bridge:
“After the Concord bridge occasion and the current Nomad bridge exploit, the Aave group ought to contemplate the chance/advantages of retaining an energetic Aave V3 market on Fantom as this community relies 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. As compared, the Aave protocol has a complete worth locked of $3.48 billion. In the meantime, 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 Enchancment Protocol would permit customers to repay their money owed and withdraw however block additional deposits and borrowings on this market. After 5 days, a group vote will likely be held to find out the way forward for Aave v3 Fantom. The Aave crew wrote:
“The danger of exposing customers to doubtlessly shedding thousands and thousands of $ resulting from causes exterior to intrinsic Aave safety is taken into account not well worth the $30 of every day charges accrued by the Aave treasury.”
Associated: Backlash as Concord 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 corresponding 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 may replicate, resulting in a “decentralized theft” as different customers joined in on the preliminary hacker’s siphoning of funds.
After publication, Simone Pomposi, Fantom’s chief advertising and marketing officer reached out to Cointelegraph, claiming:
“The Aave governance proposal has been framed as to forestall a possible bridging downside; nonetheless, the precise motive behind the proposal appears to be that Aave just isn’t capturing sufficient market share on the Fantom community to justify the chance. Proposing to take away entry to a decentralized app as a result of the enterprise mannequin is defective/unprofitable is sensible, however blaming it on hypotheticals [related to cross-chain bridges] is not honest.”
