Bug in Aave V2 Polygon Causes More Than $100M to be Trapped

A bug in Aave V2’s decentralized finance (DeFi) lending protocol on the Polygon network has prevented users from accessing $110m worth of assets on the platform. The issue is due to an incompatible upgrade to the ReserveInterestRateStrategy contract, which has meant that users cannot borrow, withdraw, repay, or supply more of these assets to the protocol as every call reverts. Although the problem is not deemed a safety issue, the only way the issue can be resolved is through governance, and Aave DAO has submitted a new proposal to fix the issue. If approved, the fix will take roughly seven days to apply. The TVL on the crypto lending protocol is $5.18bn, with Aave V2 accounting for $3.72bn of this TVL.