Decentralized finance (DeFi) lending protocol Aave has begun the first phase of its asset recovery process to rescue lost tokens. The decision was made after a unanimous vote by the DAO in favor of the move.
First Phase Targets Tokens Mistakenly Sent to Smart Contracts
The initial phase of the process aims to recover tokens mistakenly sent to smart contracts for AAVE, LEND, and staked AAVE tokens. The recovery process will include tokens such as AAVE, LEND, stkAAVE, UNI, and USDT.
$2.18 Million in Tokens to Be Recovered
According to figures provided by Aave developer Bored Ghosts Developing Lab, the value of the rescued tokens is approximately $2.18 million. AAVE tokens make up the bulk of the recovery in this phase, with over 29,188 AAVE and 107 staked AAVE tokens worth $2.16 million. The LEND tokens recovered will be converted to AAVE at a ratio of 100 LEND to 1 AAVE token.
Community Calls for Rescue Mission
The asset recovery process was initiated in response to community members’ calls, as Bored Ghosts Developing Labs stated. The recovery mission is expected to help many affected users.
Lost Tokens Worth Less Than $500 Not Covered
While the asset recovery process is significant, not all lost tokens will be recovered. Only tokens worth at least $500 will be included due to the cost of recovery outweighing the value of the tokens. The recovery plan also excludes lost tokens sent from centralized exchange wallets.
Retrieval Process Requires Use of Same Wallet Address
To retrieve lost tokens, users must use the same wallet address from which they initially lost them. The recovered tokens will be sent to a smart distributor contract, from which users can reclaim them.
Upgradable Smart Contracts Enhance the Recovery Process
The asset recovery process involves upgradable smart contracts within the Aave ecosystem. Upgradable smart contracts enable project teams to run upgrades, fix bugs, and improve smart contracts even after they are deployed on the blockchain. These changes only affect certain logic elements within the contract without interfering with its state.
In conclusion, Aave’s asset recovery process is a significant step in helping users recover lost tokens. While only tokens worth at least $500 will be salvaged, the mission is expected to enable many affected users, and upgradable smart contracts enhance the recovery process.
