The Aave community raised the issue of freezing the Binance stablecoin

Aave Community Members Consider Freezing BUSD Stablecoin on Platform. Reason: Announcement that Paxos should stop issuing stablecoins for Binance.

Aave is a decentralized finance (DeFi) protocol that allows users to lend, borrow, and otherwise interact with other users through smart contracts.

Aave community member MarcZeller wrote that since Paxos will no longer issue new BUSD tokens, the supply will go to zero, which could hurt users' assets:

“BUSD has no prospects for growth.”

On Monday, February 13, the New York State Department of Financial Services (NYDFS) demanded that Paxos Trust stop issuing new Binance USD. This stablecoin is managed by Paxos, so the company will continue to maintain the product and provide additional information as needed.

Binance representatives assure that the funds are safe and fully backed by reserves in banks.

In January, members of the Aave credit protocol voted to launch an Aave v3 pool on the Ethereum network.. In the near future, the smart contracts of the decentralized finance project will be placed on the blockchain.

In November, the Aave project froze pools with 17 tokens with low liquidity. The move was not approved by all members of the community, however, the authors of the proposal stated that the next step would be to re-verify the assets and list or exclude tokens from the platform – everything will depend on the liquidity and popularity of the asset.