Feb. 9, 2023, 2:10 a.m. | Lioba Heimbach, Eric G. Schertenleib, Roger Wattenhofer

cs.CR updates on arXiv.org arxiv.org

Anxiety levels in the AAVE community spiked in November 2022 as Avi Eisenberg
performed an attack on AAVE. Eisenberg attempted to short the CRV token by
using funds borrowed on the protocol to artificially deflate the value of CRV.
While the attack was ultimately unsuccessful, it left the AAVE community scared
and even raised question marks regarding the feasibility of large lending
platforms under decentralized governance.


In this work, we analyze Avi Eisenberg's actions and show how he was able …

anxiety attack community crv decentralization decentralized defi deflate funds governance jeopardy large lending market november platforms protocol question token under value work

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