After a $60M short assault, Aave recommends governance reforms.

On November 23, one day after Mango Markets’ exploiter Avraham Eisenberg tried to exploit the decentralized finance protocol AAVE through a series of clever short sells, project contributors put up a variety of ideas to cope with the consequences of the incident. These ideas included a variety of different ways to deal with the aftermath of the incident. These suggestions included a wide range of potential approaches to addressing the fallout from the occurrence in question.

According to the protocol engineer Llama and the financial modeling platform Gauntlet, both of whom are deployed on Aave, Llama reported that the user had been liquidated, albeit at the expense of $1.6 million in bad debt, most likely as a result of slippage. In other words, the user was liquidated at the expense of the platform. To put it another way, the user was kicked from the platform at the cost of the service. Avenue is the street that is home to both of these places.

Moving ahead, Llama’s proposition requires that the unpaid debt be settled using money from the bankruptcy fund of the Gauntlet and the Ave Treasury.

Another suggestion that was made by Gauntlet calls for the temporary freeze of a list of token markets on Aave v2, which would include the Curve DAO Token. This particular token would be included in this list. This is the second recommendation that has been offered.

The day prior, Eisenberg made an effort to provoke a liquidity crisis on Aave by shorting a big amount of CRV, which did not have a liquid market on the platform. This action was done in an attempt to profit from the situation. The very high slippage that took place (which went up to 90%), caused the smart contracts to be forced to buy back the holdings at a loss.

In spite of this, the transaction was unsuccessful due to the fact that Eisenberg was liquidated with a far less amount of slippage than was anticipated.

This article was originally reported on Blockchain News.