The Aave community is advancing plans to reduce the collateral ratio of high-volatility assets such as CRV, UNI, ZK, BAL, LDO, 1INCH, METIS, and CAKE to zero and gradually eliminate their borrowing functions. This decision follows the market crash on October 11, which saw oracle price fluctuations of 15% to 50% in a single instance, with some delays lasting several minutes. These discrepancies between on-chain and oracle prices posed significant bad debt risks. Additionally, the lending and collateral returns for these assets on Aave are notably low, leading the community to vote in favor of removing these collaterals due to the mismatch between risk and income.
Aave Community Moves to Remove High-Volatility Assets Amid Market Turmoil
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