DeFi has rough weekend with Aave and Tornado Cash chaos
It’s been a chaotic weekend for decentralized finance (DeFi) as two self-executing governance proposals wrought havoc on two well-known projects. The affected platforms are Aave, the sector’s premier lending and borrowing protocol, and Tornado Cash, a Crypto mixing tool favored by privacy advocates and hackers alike. on-chain-governance-causes- chaos -for-aave-and-tornado-cash Aave On Friday, an update to Aave V2 went into effect with the aim of adjusting interest rate calculations on certain assets across Ethereum, Avalanche and Polygon. However, the new code was incompatible with the Polygon deployment of the protocol due to the formatting of the ReserveInterestRateStrategy function, according to security firm BlockSec. .@AaveAave the latest upgrade of ReserveInterestRateStrategy in Aave V2 (Polygon) has caused a temporary halt of the protocol, impacting assets worth ~$110M! The root cause is the new ReserveInterestRateStrategy is only compatible with Ethereum, not compatib...