Aave said it is aware of reports about a potential incident involving Binance-linked wallets and stated that its contracts have not been affected. The protocol added that positions on Aave remain overcollateralized. As a precaution, all DAO-operated V3 and V4 markets have been frozen. The move halts new deposits and borrowing, while users can still withdraw funds and repay existing positions. Earlier, Binance was suspected of seeing large abnormal outflows. On-chain monitoring put the scale at several billions of dollars, and some stablecoins tied to the incident have already been frozen by their issuers. CZ said the actual loss may be slightly above $1 billion and that the amount will be fully covered.
According to ChainCatcher, Aave said in an official statement that it is aware of reports about a potential incident involving Binance-linked wallets.
Aave said its contracts were not affected and that positions remain overcollateralized. As a precaution, all DAO-operated V3 and V4 markets have been frozen. The freeze pauses new deposits and borrowing, while users can still withdraw funds and repay existing positions.
Earlier, Binance was suspected of experiencing large abnormal outflows. On-chain monitoring showed the scale reached several billions of dollars, and some stablecoins involved have been frozen by their issuers. CZ said the actual loss may be slightly above $1 billion and will be fully covered.
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