Aave V2, a decentralized finance (DeFi) lending protocol operating on the Polygon network, has encountered a significant bug that has rendered approximately $110 million worth of user assets inaccessible. The bug arises from an incompatible upgrade to the ReserveInterestRateStrategy contract deployed on Polygon.
The bug exclusively affects the implementation of Aave on the Polygon network, leaving the V3 version unaffected. Specifically, users are currently unable to interact with Wrapped Ether (WETH), Tether (USDT), Wrapped Bitcoin (WBTC), or Wrapped Matic (WMATIC) pools on Aave V2 Polygon, thereby preventing the withdrawal of assets from these pools.
This issue has garnered attention from the cryptocurrency community, leading to proposals and discussions aimed at resolving the bug and restoring user access to their assets. A proposal, submitted on May 19, has been put forward as an attempt to address the bug and provide a solution.