Aave community proposal on "Freeze BUSD on Aave v2 ETH" was passed

02/27 06:07

The Aave community proposal on "Freeze BUSD on Aave v2 ETH" was voted through with 100% support and was implemented on February 26. This AIP proposes to freeze the BUSD reserve on the Aave V2 Ethereum pool. While BUSD is not an asset with borrowing power, and recent development does not present risks of excess debt, From Feb 2023, the circulating supply of this asset will eventually go toward zero. As there’s no real prospect of growth and the inability to mint new BUSD might hurt peg arbitrage opportunity and asset peg. It seems that the most reasonable path for Aave is to freeze this reserve and invite users to switch to another stablecoin among the diversity present in Aave.

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