Fantom too risky – Aave proposes to block blockchain integration

Risky gateway – The DeFi protocol Ave wants to partially break with the Fantom (FTM) blockchain, to protect itself from another potential hack that would attack the bridge that connects the two projects.

The end of the multi-chain narrative

Bridges are crumbling and caution takes precedence over dreams of interoperability. According to chain analysishacking thirteen bridges this year allowed hackers to do it subtract nearly $ 2 billion in cryptocurrencies.

The hack-related losses of the Axie Infinity Ronin Bridge, Wormhole and the Harmony Bridge and Ethereum (ETH), amounted to more than a billion dollars. These figures push the protocols to reconsider their multi-chain ambitions, with a view to a classical but useful calculation. costs / benefits.

Aave and Fantom: risky and not very juicy

In light of these hacks, Marc Zeller, Aave Integration Manager, wants to close the bridges. On 2 August it issued a proposal to freeze the “Platform Fantom v3 market”.

For their own security, users will no longer be able to deposit or borrow “assets in the Aave V3 market on Fantom”. However, they will continue to have access to some features such as “debt repayment, liquidations, withdrawals and interest rate changes”.

Multi-chain play with Fantom wouldn’t be worth it. The financial consequences of the suspension of the integration with Fantom would be negligible.

Aave on Fantom is currently reporting $ 300 average daily rate to the DeFi protocol for about ” $ 30 daily rate for Aave’s treasure. ”For comparison, Aave on Ethereum earns $ 327,000 per day, compared to $ 133,366 for Aave on Avalanche.

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A vote to cut the bridges

Aave is a cryptocurrency lending and lending protocol and the third DeFi project by total locked-in value, behind Creator And Swap, according to data from DeFi Pulse. Fantom is a smart contract platform created in 2018, optimized for speed and hosting many decentralized applications.

Aave now offers its services on blockchains like Avalanche and Fantom, or second tier networks like Optimism, Arbitrum and Polygon.

Marc Zeller wants Aave to cut ties with Fantom, an initiative that the protocol had already taken after the hacking of the Harmony bridge that hit him. Marc Zeller’s proposal will be submitted to the project’s DAO vote on Snapshot, 8 August.

The Aave community will vote unanimously for this end-of-protocol interoperability with Fantom, how? this was the case with theand stablecoin GHO ?

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