Aave, Several Other Platforms Restrict ETH Trading due to The Merge
As the most-awaited and major upgrade on Ethereum, The Merge is influencing the DeFi world to a great extent. Platforms such as Aave are witnessing diverse modifications. Aave group is prepared for voting on an exclusive proposal that would stop borrowing on ETH till the latest upgrade of Merge takes place.
Aave Stops ETH Borrowing Till the Merge
The venue considers that the protocol is going through huge utilization hazards within the market of Ethereum consequence of the notorious PoW-based fork of the network. The DeFi-based borrowing and lending protocol has launched the proposal to momentarily terminate ETH borrowing. The proposal’s voting will be open from now till the 2nd of the coming month. According to Aave, this pause will assist the protocol to minimize the extent of hazard posed by the onerous Ethereum fork named ETHPoW.
Keeping in view that the users can take advantage of the ETHW (the forked PoW token of Ethereum) by ETH tokens’ borrowing in advance of the Merge. In addition to this, with the extreme utilization, the liquidation transactions will be influenced, raising the risks for Aave. The protocol noted that they have pondered over the hazards of Ethereum Merge for MakerDAO thus they concluded that the protocol has the chance of confronting additional risks.
LooksRare Declares to Stop Supporting ETH PoW
Apart from that, ‘LooksRare’ (an NFT marketplace) has also cautioned its community that a chain split can potentially take place on Ethereum between PoS and PoW. In this way, LooksRare will be placed into maintenance mode. Along with this, the presently running multi-sig on the protocol will modify the Currency Manager due to which WETH will no longer be supported anymore. It asserted that as the wider community of Ethereum has decided to shift to PoS LooksRare favors that by not supporting the PoW chain of Ethereum.
Robinhood to Halt for Tokens Operating on Ethereum Blockchain
Moving onward, a famous financial services provider ‘Robinhood’ took to Twitter and informed the users that it will halt the withdrawals in the case of UNI, SHIB, MATIC, LINK, COMP, AND AVAX during the Merge upgrade. The venue stressed that this step is being taken to ensure the stability of their systems as well as the blockchain in advance of the impending ETH update and resuming withdrawals. It also advised the community not to send their ETH to those who say that they would upgrade the tokens to Eth2.
