Aave initiated a community vote to classify the April security incident as a shortfall event in order to activate the safety module to cover the deficit

ChainCatcher news, Aave has initiated a community vote to "qualify the security incident on April 11, 2023, as a shortfall event," which will end on November 20. The proposal states that due to assets being frozen/suspended, users lost funds in the aforementioned incident, reporting two types of losses: losses from liquidation and losses from high interest rates and accrued interest, which seem to fit the definition of a shortfall event. If this temperature check is approved, the next step will be to activate the safety module.

It is reported that the AAVE Safety Module is designed to protect the protocol from unexpected financial losses when shortfall events occur. When a shortfall event happens, the AAVE Safety Module will be activated to cover the deficit, with stakers facing a risk of up to 30% of their staked assets being used to fill the gap, while any excess will be covered by the issuance of additional AAVE.