The popular project from the decentralized finance (DeFi) space, Aave, drew criticism from community members after one of its users was blocked.
Yo. WHAT THE FUCK @AaveAave $ AAVE? pic.twitter.com/xKnaG7Idya
— HMS RΞΞpΞr 🇫🇷 (@Fernjosh1) May 12, 2021
“Alert against money laundering (AML),” reads the message received by the user. – Your address has been blacklisted due to anti-money laundering requirements. You cannot interact with the Aave Protocol from this address. ”
As expected, the situation caused massive outrage, since the blocking contradicts the very idea of DeFi as an alternative to the traditional financial system, free from its inherent limitations. However, the circumstances were not as straightforward as originally thought.
Aave founder Stanie Kulechov clarified that the warning was issued in error and refers to a different pool that is currently being tested. “This is a private pool for institutions still practicing before breaking into DeFi,” he wrote. “You can always use the Aave Protocol – the protocol is decentralized and works autonomously on the Ethereum network.”
Thus, what initially looked like an extremely negative trend for DeFi, in fact, became the premature announcement of the new Aave feature. When these situations recur, users are encouraged to contact the project team.
The AAVE token rose by 20% overnight, and after the described leak, it grew by another 10% in an hour. Now at $ 568, it is the 28th largest asset on the market.
Aave is developing a crypto lending protocol on the Ethereum blockchain, where token holders can earn interest on their assets in specialized pools. The project was launched under the name ETHLend in November 2017 and was subsequently rebranded.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
