Can I Safely Keep My Funds in AAVE After Reserve Freeze If APY Is Still Generating?


I have some capital in protocol and I am collecting a decent Aave APY on it. However, a recent Aave AIP decision froze the reserves, making it impossible to deposit or take out new loans. My question is whether it is safe for me to keep my funds in protocol until my Aave APY is depleted, or if I am at any risk due to the reserve freeze?

Answers 1

If assets remain borrowed, the withdrawals would not be possible until it ends up being liquidated that position or the borrower decide to repay.

But also that would mean that the rate is pretty high given that scenario.