Dear Aave community, I fully respect Aave’s decision regarding the conversion of DAI and USDS. However, I have a few concerns that I would like to consult regarding users who currently have deposits in the 12EE pool.
Regarding the risk associated with DAI, is it necessary to impose withdrawal restrictions on depositors in the pool as a risk control measure, and is such a response too drastic?
For users engaging in Flash Loans within the pool, no matter what type of asset is used as collateral, Flash Loans can only be successfully executed if the profit covers the interest. So why is it necessary to stop the use of DAI assets?
For DAI assets that have already been subjected to risk control measures, when will the restrictions be lifted to allow users to freely withdraw their funds?
Thank you for the detailed context. Here’s the translation of your message:
The pool with the suffix “12EE” we mentioned refers to the yield farming pool on Aave for DAI on the Polygon network, with the full address “0x82E64f49Ed5EC1bC6e43DAD4FC8Af9bb3A2312EE.”
Regarding the freezing issue: Since August 30, the DAI assets we deposited into the 12EE pool via the routing contract can no longer be freely deposited and withdrawn as before. According to the project team, Aave triggered risk management measures that froze our flash loan assets on-chain. This routing contract was previously the largest holder of apolDAI but is now deprecated. We have more than $10 million in DAI assets frozen due to these risk controls.
We are unsure whether Aave considers DAI assets to no longer qualify as collateral, which led to the risk management action on DAI assets.
I hope you can help answer our current questions. If there is anything unclear in my explanation, please let me know, and I will continue to discuss it with you. Thank you very much!
There are various apps where you can check aave configuration - e.g. here Aave - Open Source Liquidity Protocol you can see it’s in fact not frozen or similar.
Nothing about this sentence makes any sense. Flash-loaned assets are borrowed and repayed in a single block. Aave protocol cannot “freeze flash loan assets on-chain”(whatever this is supposed to mean). Flash loans are still possible on DAI and are still used by people.
3. Dai is still collateral. Not aware of any plan to change this anytime soon.
To me it’s still unclear what issue you are facing.
Thank you very much for your reply. We have more or less found the answer, which is that the freezing was not caused by Aave, but possibly by other reasons.