DeFi protocols Aave and Compound have implemented new security measures in light of the ongoing volatility in the crypto market.
On Sunday, Aave executed a proposal to freeze the market for 17 different assets in the Aave V2 lending pool on the Ethereum network, including Yearn.Finance (YFI), Curve DAO (CRV), Gemini Dollar (GUSD), Maker (MKR ) and 1inch (1INCH) tokens.
According to DeFi Llama, two crypto lending protocols, Aave and Compound, account for $3.7 billion and $1.7 billion of the total value locked in the DeFi ecosystem, respectively.
They have all seen huge downside swings over the past month. Assets on the Aave platform are down 31% compared to a month ago. Meanwhile, Compound is down 26% over the past 30 days.
“DeFi protocols are being battle-tested, which highlights how communities can implement new parameters to enhance risk-mitigating factors in a rapidly evolving and volatile market environment,” Aave founder and CEO Stani Kulechov told Decrypt.