Aave founder sharply criticizes Gauntlet for suspending withdrawals from the long-standing DeFi protocol Compound: Assets like deUSD should not be included in major markets.

ChainCatcher reported that Aave founder and CEO Stani.eth posted on X that the risk control team Gauntlet has suspended Compound withdrawals; due to the de-pegging of deUSD, users are unable to withdraw funds when there is a risk of bad debt, resulting in a "locked position" status. Gauntlet CBO Nick Cannon responded in the comments, saying "The suspension is proactive, just like what we did for Aave a few years ago, and it reduces the risks highlighted in the screenshot." Stani.eth also commented that "this asset should not be listed in the main market."

Data shows that the deUSD stablecoin began to experience severe de-pegging last night, and is now decoupled to $0.1, with its total market cap dropping from tens of millions to millions of dollars.