Temporary Prevention Measure Taken by Aave Guardian
The decentralized finance (defi) protocol Aave's guardian announced on November 4th that it had temporarily paused the Aave V2 Ethereum Market and frozen certain assets on Aave V3 on Polygon, Arbitrum, and Optimism. This decision was made in response to a reported issue concerning the protocol.
The guardian of Aave, an open-source and non-custodial liquidity protocol, took the temporary prevention measure to ensure the safety of user funds. The Aave team reassured users that no funds were at risk and clarified that the Aave V3 markets on Ethereum, Base, and Metis, as well as the V2 markets on Polygon and Avalanche, were not affected by the reported issue.
Users Can Still Withdraw or Repay Positions
Despite the temporary freeze on certain Aave markets, users are still able to withdraw or repay their positions. However, until the undisclosed issue is resolved, users will not be able to supply or borrow additional funds on these markets. The Aave team emphasized the importance of resolving the issue before enabling full functionality on the affected markets.
Restoration Proposal and Postmortem Analysis
To restore the normal operation of the Aave Protocol, a governance proposal will be submitted shortly. The Aave team also mentioned that a detailed postmortem analysis will be released once the issue has been fully resolved. This analysis will provide insights into the incident and the measures taken to address it.
User Concerns and Community Response
Following the announcement, some Aave users expressed frustration over the freeze and requested more frequent updates from the team. One user questioned why they were unable to repay or withdraw funds despite the team's previous statement. The Aave team did not provide an immediate response to these concerns.
Share Your Thoughts
What are your thoughts on the temporary pause and asset freeze implemented by the Aave Protocol? Feel free to share your opinions and insights in the comments section below.
Frequently Asked Questions
Should You Invest in Gold for Retirement?
The answer will depend on how many dollars you have saved so far and whether you had gold as an investment option at the time. If you are unsure which option to choose, consider investing in both options.
Gold offers potential returns and is therefore a safe investment. This makes it a worthwhile choice for retirees.
Most investments have fixed returns, but gold's volatility is what makes it unique. Its value fluctuates over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. It is important to consider the fluctuations when planning your portfolio.
Another benefit of gold is that it's a tangible asset. Gold is less difficult to store than stocks or bonds. It can also be transported.
As long as you keep your gold in a secure location, you can always access it. Plus, there are no storage fees associated with holding physical gold.
Investing in gold can help protect against inflation. You can hedge against rising costs by investing in gold, which tends to rise alongside other commodities.
A portion of your savings can be invested in something that doesn't go down in value. When the stock market drops, gold usually rises instead.
Another advantage to investing in gold is the ability to sell it whenever you wish. You can also liquidate your gold position at any time you need cash, just like stocks. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all your eggs on one basket.
Don't purchase too much at once. Start by purchasing a few ounces. Add more as you're able.
The goal is not to become rich quick. Rather, it's to build up enough wealth so you won't need to rely on Social Security benefits.
While gold may not be the best investment, it can be a great addition to any retirement plan.
What is a Precious Metal IRA?
An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These are “precious metals” because they are hard to find, and therefore very valuable. These metals are great investments and can help protect your financial future from economic instability and inflation.
Bullion is often used to refer to precious metals. Bullion is the physical metal.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
A precious metal IRA lets you invest in bullion direct, instead of purchasing stock. This will ensure that you receive annual dividends.
Unlike regular IRAs, precious metal IRAs don't require paperwork or annual fees. Instead, you pay a small percentage tax on the gains. You also have unlimited access to your funds whenever and wherever you wish.
What are the fees associated with an IRA for gold?
$6 per month is the Individual Retirement Account Fee (IRA). This fee includes account maintenance fees as well as any investment costs related to your selected investments.
To diversify your portfolio you might need to pay additional charges. The fees you pay will vary depending on the type of IRA that you choose. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
A majority of providers also charge annual administration fees. These fees range between 0% and 1 percent. The average rate is.25% per year. These rates are usually waived if you use a broker such as TD Ameritrade.
How to Open a Precious Metal IRA?
It is important to decide if you would like an Individual Retirement Account (IRA). Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. This form should not be completed more than 60 days after the account is opened. Once this is done, you can start investing. You may also choose to contribute directly from your paycheck using payroll deduction.
Complete Form 8903 if your Roth IRA option is chosen. Otherwise, it will be the same process as an ordinary IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS stipulates that you must have earned income and be at least 18-years old. You cannot earn more than $110,000 annually ($220,000 if married filing jointly) in any one tax year. Contributions must be made on a regular basis. These rules are applicable whether you contribute through your employer or directly from the paychecks.
You can invest in precious metals IRAs to buy gold, palladium and platinum. However, you can't purchase physical bullion. This means that you will not be allowed to trade shares or bonds.
You can also use your precious metallics IRA to invest in companies that deal with precious metals. Some IRA providers offer this option.
There are two major drawbacks to investing via an IRA in precious metals. They aren't as liquid as bonds or stocks. They are therefore more difficult to sell when necessary. They don't yield dividends like bonds and stocks. So, you'll lose money over time rather than gain it.
Which precious metal is best to invest in?
This question depends on how risky you are willing to take, and what return you want. Gold is a traditional haven investment. However, it is not always the most profitable. If you are looking for quick profits, gold might not be the right investment. If patience and time are your priorities, silver is the best investment.
If you don’t want to be rich fast, gold might be the right choice. If you want to invest in long-term, steady returns, silver is a better choice.
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement plans
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
Guidelines for Gold Roth IRA
Starting early is the best way to save for retirement. As soon as you become eligible, which is usually around age 50, start saving and keep it up throughout your career. To ensure sufficient growth, it is vital that you contribute enough each year.
You may also wish to take advantage of tax-free investments such as a SIMPLE IRA, SEP IRA, and traditional 401(k). These savings vehicles allow you to make contributions without paying taxes on earnings until they are withdrawn from the account. These savings vehicles are great for those who don't have access or can't get employer matching funds.
It is important to save consistently over time. You'll miss out on any potential tax benefits if you're not contributing the maximum amount allowed.
By: Terence Zimwara
Title: Aave Protocol Pauses Aave V2 Ethereum Market and Freezes Assets on Multiple Chains
Sourced From: news.bitcoin.com/aave-v2-ethereum-market-and-several-assets-paused-team-says-no-funds-are-at-risk/
Published Date: Tue, 07 Nov 2023 08:30:36 +0000