Hacking News
Aave Borrowing Rates Reach 36%
Aave's stablecoin reserves were frozen during the Binance hot-wallet incident, causing borrowers to pay interest while suppliers could request their money back. This situation left Aave with a rate mechanism that couldn't work in frozen reserves, making borrowing more expensive and preventing new deposits from suppliers. The freeze affected borrowers and suppliers in Aave's reserves, which reopened by October 31.