Frozen Markets and Reserves
A reserve on the Aave protocol can be frozen by calling the
setReserveFreeze function on the PoolConfigurator contract, which is deployed for each Aave market. This function is callable by addresses with the RiskAdmin or PoolAdmin role, which is owned by Aave Governance (or Guardian multisig on networks without governance bridge), and can also be granted this role.A reserve is frozen by calling one which does not allow any new supply, borrow, or rate swap (variable/stable). Repay, withdraw, liquidations, and interest accrual (stable rate rebalances).
Yes, the same process and smart contract function can be used to unfreeze as well if conditions are suitable for reserves to be reinstated for supply and borrow.
The table below shows which functions are callable depending on the state of the reserve.
For example, when a reserve is not frozen or paused, if the reserve is
active, it is still possible to supply() assets.Function | Active | Frozen | Paused | Borrowing Enabled | Stable Borrowing Enabled |
|---|---|---|---|---|---|
Supply | Yes | No | No | | |
Withdraw | Yes | | No | | |
Borrow | Yes | No | No | Yes | Depends on the mode |
Repay | Yes | | No | | |
SwapRateMode | Yes | No | No | | Depends on the mode |
RebalanceStableBorrowRate | Yes | | No | | |
SetUseReserveAsCollateral | Yes | | No | | |
Flashloan | Yes | | No | | |
Liquidate | Yes | | No | | |
AToken Transfer | | | No | | |
In
V2 it is not possible to pause a specific reserve, only the entire pool.In
V3 role emergencyAdmin can pause a specific reserve.Modes such as eMode and Isolation Mode behave the same as the
borrow() function (as you are borrowing in each mode).This Snapshot called for the guardian to disable the ability to borrow and supply assets in the Aave V3 Fantom market, whilst allowing the repayment of debt, liquidations, withdrawals, and changes to the interest rates. The decision to freeze the market has come from the unbalanced risk/reward of keeping the Aave V3 market on Fantom. The potential risk to users losing money outweighs the benefits to keeping the Aave V3 market on Fantom.
Due to the Horizon bridge exploit, certain assets on the Harmony network are not at parity with Ethereum, which affects the Aave V3 Harmony market. Freezing all reserves on Harmony limits the impact to the users, Protocol and DAO. Please see the Snapshot for further details.
Asset | Market | Frozen | AIP |
|---|---|---|---|
BAL | Aave V2 Ethereum | Nov 18th, 2022 | |
CVX | Aave V2 Ethereum | Nov 18th, 2022 | |
REN | Aave V2 Ethereum | Nov 18th, 2022 | |
UST | Aave V2 Ethereum | May 19th, 2022 | |
xSUSHI | Aave V2 Ethereum | Nov 1st, 2021 | |
DPI | Aave V2 Ethereum | Nov 1st, 2021 | |
UNI | Aave V2 Ethereum AMM | Nov 1st, 2021 | |
BAL | Aave V2 Ethereum AMM | Nov 1st, 2021 |
Last modified 8d ago