Aave developers propose to freeze the integration of Fantom
The Fantom market on Aave v3 adds only $30 to the treasury of the DeFi protocol every day; developers are also concerned that integration creates security risks due to lack of support and potential vulnerability.
On Tuesday Mark Zeller, head of the Aave Decentralized Finance (DeFi) Borrowing and Lending Protocol Integration department, suggested freezing the Aave v3 platform market on Fantom. Fantom (FTM), created in 2018, is a directed acyclic graph smart contract platform that provides DeFi services and to which Aave is currently connected.
Zeller explained the reason for dismantling the Fantom bridge:
"Following the Harmony Bridge event and the recent Nomad Bridge exploit, the Aave community should consider the risk/benefits of maintaining an active Aave V3 market on Fantom, as this network depends on any swap (multi-chain) bridge."
Zeller also explained that the Aave v3 market on Fantom has not received significant support, since the current market size is $9 million and $2.4 million of open loans. For comparison, the total cost of the Aave protocol is $3.48 billion. Meanwhile, the Fantom market on Aave generates only about $300 per day for the borrowing-lending protocol, of which $30 goes to the Aave Treasury.
If adopted, the Aave Improvement Protocol will allow users to repay their debts and withdraw funds, but block further deposits and loans in this market. A community vote will be held in five days to determine the future of Aave v3 Fantom. The Aave team wrote:
"The risk that users could lose millions of dollars for reasons unrelated to Aave's internal security is considered not worth the $30 daily fees charged to the Aave Treasury."
The multi-chain bridge, which some praise as the pinnacle of interconnection, has been criticized by skeptics such as Vitalik Buterin, for his supposed fragility. Earlier on Tuesday, the Nomad token bridge was emptied for $190 million after hackers discovered a vulnerability in the code. The attack could have been replicated by anyone, which led to a "decentralized robbery" as other users joined the initial siphoning of funds by the hacker.
https://coin-signal.com/cryptonews/aave-developers-propose-to-freeze-the-integration-of-fantom/
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