A community proposal on the Aave lending protocol seeks to freeze the True USD (TUSD) reserve in response to the stablecoin's controversial ownership structure. If passed, new users would be prohibited from depositing or borrowing TUSD in the Aave V2 Ethereum pool. Existing users, however, can continue to repay or withdraw TUSD. The proposal, already backed by 83.76% of votes, comes amid regulatory concerns over TUSD's custodian Prime Trust and allegations linking crypto entrepreneur Justin Sun to TUSD.
