Compound Finance to impose lending caps in light of failed Aave exploit

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Compound Finance to impose lending caps in light of failed Aave exploit
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The crypto lending space is tightening its belt as the market continues to heal.

,""risk of high utilization," and"risk from shorting assets from a short position on Compound of significant size relative to the circulating supply of the asset." Although the related incident was not directly referenced, Gauntlet also conducted modeling and risk assessment for DeFi lending protocol Aave.

Gauntlet then proposed to freeze a series of tokens on Aave V2 that may be at risk of an exploit due to lack of liquidity. Currently, the Compound Finance protocol has $654.7 million in total borrowings collateralized by $2.146 billion worth of assets.

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