On November 17th, the Aave community initiated a community vote to classify the "November 4th security incident as a shortfall event". The vote will end on November 20th. The proposal states that users lost funds due to assets being frozen/suspended during the above-mentioned event. Users reported two types of losses: losses caused by liquidation and losses caused by high interest rates and accrued interest. Therefore, the event meets the definition of a shortfall event. If this temperature check is approved, the next step is to activate the safety module.
It is reported that the role of the AAVE safety module is to protect the protocol from unexpected financial losses when a shortfall event occurs in the AAVE protocol. If a shortfall event occurs, the safety module will use up to 30% of the locked pledged assets for auction to make up for the deficit. If the amount withheld from the safety module is not sufficient to pay all debts, a temporary mechanism called Recovery Issuance will be triggered to issue more AAVE and use it together with the funds extracted from the safety module to make up for the deficit.