Annual percent yields, or APY, on crypto borrowing and lending platform Aave have surged to record levels afterward capital withdrawals sent the decentralized finance, or DeFi, protocol into a liquidity crisis. At the time of writing, variable APY on borrowing stablecoin Dai via Aave has surged to 24.88%, compared to approximately 6.50% the day prior.

According to cryptocurrency researcher Igor Igamberdiev, blockchain personality Justin Sun was responsible for at least billions of dollars in withdrawals in the past few hours. Aave's total value locked, or TVL, roughshod to $xiv.7 billion from $17.89 billion the twenty-four hour period prior, based on data from DeFi Pulse.

In a series of tweets, Aave developers revealed that fiscal modeling platform Gauntlet Network submitted an Aave Improvement Protocol, or AIP, to disable the borrowing role for xSUSHI and DeFi Pulse Index (DPI) tokens equally a precautionary measure. In addition, the AIP also chosen for disabling Automated Market place Maker, or AMM, liquidity provider tokens on the Aave AMM Marketplace as an actress safeguard.

Earlier in the week, members of the Aave community voiced concerns regarding vulnerabilities with using xSUSHI tokens as collateral for borrowing on the platform. Aave developers alleged that the Gauntlet Network squad ran simulations showing that it would not be economically viable to exploit xSUSHI tokens on Aave. Nevertheless, Aave developers claim that the Gauntlet Network however put along the AIP despite these results. The AIP is currently in the voting phase, with "Yes" votes heavily favored.

Prior to today's flight, Aave was the virtually pop DeFi protocol as ranked past Defi Llama. The platform has a lot of traction among cryptocurrency enthusiasts looking to yield subcontract or take out a stablecoin loan by pledging their digital currencies as collateral.