{"id":66733,"date":"2022-09-06T12:07:55","date_gmt":"2022-09-06T09:07:55","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=66733"},"modified":"2025-09-07T02:52:44","modified_gmt":"2025-09-06T23:52:44","slug":"aave-community-backs-pause-on-borrowing-in-ethereum-ahead-of-the-merge","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/aave-community-backs-pause-on-borrowing-in-ethereum-ahead-of-the-merge\/","title":{"rendered":"Aave community backs pause on borrowing in Ethereum ahead of The Merge"},"content":{"rendered":"<p>The proposal to pause lending on Ethereum through the DeFi protocol Aave ahead of the major upgrade <a href=\"https:\/\/u1f987.com\/en\/news\/ethereums-move-to-proof-of-stake-pos-what-you-need-to-know\">The Merge<\/a> received <a href=\"https:\/\/app.aave.com\/governance\/proposal\/97\/\">\u043f\u043e\u0434\u0434\u0435\u0440\u0436\u043a\u0443<\/a> almost 78% of votes.<\/p>\n<p>The authors argued for a pause in lending citing the high risk of surges in activity. It is anticipated that users will borrow ether to profit from potential <a href=\"https:\/\/u1f987.com\/en\/news\/ethereum-pow-fork-supporters-call-it-inevitable\">PoW forks<\/a> on the second-largest cryptocurrency network.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">I\u2019m borrowing some <a href=\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ETH<\/a> on <a href=\"https:\/\/twitter.com\/AaveAave?ref_src=twsrc%5Etfw\">@AaveAave<\/a> ahead of the Merge to get the ETH-PoW airdrop <a href=\"https:\/\/t.co\/fgpOgPQFnx\">https:\/\/t.co\/fgpOgPQFnx<\/a> <a href=\"https:\/\/t.co\/pQ4xcnnk03\">pic.twitter.com\/pQ4xcnnk03<\/a><\/p>\n<p>\u2014 Soldman Gachs \u2310\u25e8-\u25e8 (@DrSoldmanGachs) <a href=\"https:\/\/twitter.com\/DrSoldmanGachs\/status\/1566793078039773186?ref_src=twsrc%5Etfw\">September 5, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abHigh utilisation hinders liquidation operations, which increases the chances of protocol insolvency. In addition, the elevated ETH borrowing rate could render recursive stETH\/ETH positions unprofitable. This will increase the likelihood that users will close positions and widen the stETH price deviation\u00bb, \u2014 the explanation states.<\/p>\n<\/blockquote>\n<p>According to <a href=\"https:\/\/dune.com\/datanut\/Compound-Maker-and-Aave-Deposits-Loans-LTV\">Dune Analytics<\/a>, there has been no noticeable growth in borrowing volume in the protocol over the past month.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/fWG6rHM9-O5jPmyEtTigzdeeRRusisGLdaI0vlC96TRrseTR1tOXDuFzJQlUuVRhi5CSMEu5llgZuGypsIRalxZOcvrzuGywILtMmyfkebGyoiHSFi_XOUnvqkxL_kUzGnCQ8mdG0RRcM4iqLlCpwf2xQZt2-u-cWu6lRNsu47jQ0lpEPndy4eZdsQ\" alt=\"Aave community backs pause on lending in Ethereum ahead of The Merge\"\/><figcaption>Data: Dune Analytics.<\/figcaption><\/figure>\n<p>The value of assets locked in Aave over the last 30 days has fallen by almost 10%, to $6.45 billion, according to <a href=\"https:\/\/defillama.com\/\">DeFi Llama<\/a>.<\/p>\n<p>As of writing, stETH trades at roughly a 3.5% discount to Ethereum (<a href=\"https:\/\/www.coingecko.com\/\">CoinGecko<\/a>). The platform&#8217;s token for liquid staking <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-lido\">Lido Finance<\/a> represents ETH locked in the <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-the-proof-of-work-pow-algorithm\">PoS<\/a>-network Beacon Chain. The price of the derivative asset <a href=\"https:\/\/u1f987.com\/en\/news\/lidos-tokenized-ethereum-platform-falls-5-vs-the-original\">has diverged<\/a> from the &#8216;original&#8217; in June. This occurred amid a roughly sevenfold decline in the largest ETH\/stETH liquidity pool on Curve <a href=\"https:\/\/u1f987.com\/en\/news\/since-early-may-the-largest-steth-liquidity-pool-has-shrunk-sevenfold\">\u2014 to $620 million<\/a>.<\/p>\n<p>Earlier, Ethereum developers <a href=\"https:\/\/u1f987.com\/en\/news\/ethereum-developers-narrow-the-timeline-for-the-switch-to-proof-of-stake\">planned to migrate<\/a> mainnet to the PoS algorithm around September 15.<\/p>\n<p>Read ForkLog&#8217;s Bitcoin news in our Telegram \u2014 news on cryptocurrencies, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The proposal to pause lending on Ethereum via the DeFi protocol Aave ahead of The Merge received support from almost 78% of votes.<\/p>\n","protected":false},"author":1,"featured_media":66734,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1212,46,1097],"class_list":["post-66733","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-aave","tag-ethereum","tag-lending"],"aioseo_notices":[],"amp_enabled":true,"views":"23","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/66733","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=66733"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/66733\/revisions"}],"predecessor-version":[{"id":66735,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/66733\/revisions\/66735"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/66734"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=66733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=66733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=66733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}