Aave Says V3.8 Guard Would Preserve Flash-Loan Liquidations

Aave Labs says its proposed V3.8 security upgrade would leave open a route used by flash-loan integrations to liquidate borrowing positions. In an Oct. 23 clarification, Aave Labs said flashLoan() and flashLoanSimple() would remain outside the guard. That would allow a flash-loan callback to continue calling Aave Pool functions, including a liquidation, under the proposed design. A flash loan lets a contract use Pool liquidity during one transaction. A liquidation integration can use those assets to repay an unhealthy borrow and take discounted collateral, which can help repay the flash loan.