Aave Halts ETH Loans As Ethereum Bellatrix Merge Upgrade Goes Lives
- The decentralized financial industry agreement AAVE suspended Ethereum borrowing (ETH).
- Since Ethereum will carry out the share confirmation upgrade, AAVE's cell network voting is applicable to this determination.
- The agreement shows a relatively high loan utilization rate before the merger.
- The determination of AAVE was made not long before the release of Bellatrix, which is the first of the two phases before the final POS connection of Ethereum
AAVE is a decentralized financial borrowing agreement encouraged by Ethereum blockchain technology. After the community network voted to suspend Ethereum (ETH) borrowing, the agreement has been suspended with the proximity of merger. This merger is a change of Ethereum from the consensus of work unit certification to the confirmation of rights and interests.
Data encryption users can use the original digital currency Ethereum in Ethereum blockchain technology by using AAVE's protocol. It is noteworthy that the demand for loans from this defi giant increased in the weeks before the merger
A proposal called "temporary suspension of eth loans" launched an online vote in the AAVE community. This proposal is closely around the anxiety that Ethereum's POS upgrade may cause the soaring utilization rate of AAVE loans
The utilization rate of AAVE indicates that the borrowed eth accounts for the percentage of the remaining eth in the protocol pool. As people's expectations for Ethereum POS upgrade continue to grow, the liquidity problem has become the focus of the community
A key worry is that the utilization rate is likely to be 100%, making AAVE's protocol in the short board of liquidity. In fact, the proposal has won 96.18% of community network votes and can be used as a deterrent to avoid liquidity crisis.
Block Analitica, a chain analysis organization, also responded to similar evaluations and said that "temporarily suspending eth loans will mitigate such high utilization risks".Ethereum's Bellatrix upgrade was successful, and the merger was closer than in the past
Ethereum's Bellatrix upgrade plan was released on September 6, 2022, as expected by key eth developers and encryption algorithm advocates. This activity means the first of the two phases of the merger, which is also an important upgrade of Ethereum Internet
Eth's response to Bellatrix's upgrade was a 6% property price increase. According to the data of tradingview, after the information was released, the trading price of digital currency was about 1669 US dollars.
In London, according to an article by vitalik buterin, founder of Ethereum, the second phase of the merger is expected to be between September 13 and 15
By the time of submission, Ethereum's Bellatrix upgrade had been successful, and Internet participation exceeded 94%. Next, the developer will lead to the sunset of the public testing network like kill, and make full preparations for the upgrade in Paris, France, in the late September of this year