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Aave proposes governance changes after failed $60M short attack

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cointelegraph.com

On Nov. 23, one day after Mango Markets exploiter Avraham Eisenberg attempted to use a series of sophisticated short sales to exploit decentralized finance protocol Aave, project contributors have put forth a series of proposals to deal with the aftermath.

As told by protocol engineering developer Llama and financial modeling platform Gauntlet  both of whom are deployed on Aave: Llama wrote that the user had been liquidated but at the cost of $1.6 million in bad debt, likely due to slippage. "This excess debt is isolated only to the CRV market," the firm wrote. "While this is a small amount relative to the total debt of Aave, and well within the limits of Aave's Safety Module, it is best practice to recapitalize the system to make whole the CRV market."Going forward, Llama's proposal calls upon the Gauntlet’s insolvency fund and Aave Treasury to make whole the bad debt.

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