# Aave: "We have re-enabled repay with collateral"

Source: https://governance.aave.com/t/periphery-contracts-incident-august-28-2024/18821/12

## Summary

Aave Labs disabled all swap-related functions in its user interface after BGD Labs reported that small token balances in periphery contracts used for swaps were exploited. The contracts are separate from the core protocol and had accumulated residual tokens from swap transactions, which they were not designed to handle. Aave Labs states that no user funds were impacted and that the lost tokens belonged to the Aave DAO. Users can still manage positions through other functions in the Aave Labs interface or through third-party interfaces, and the team says a fuller update will follow.

## Article

Periphery Contracts Incident August 28 2024

Yesterday, BGD Labs reported to Aave Labs that some periphery contracts used in the Aave Labs user interface (not part of core protocol) to perform swaps had a small balance (exact amount to be confirmed) that was exploited. These contracts, which are separate from the core protocol and used for facilitating token swaps, had accumulated small token balances over time. The accumulation is a result of residual tokens left over from swap transactions, a situation these contracts were not designed to handle. As a precautionary measure, the Aave Labs team has immediately disabled all functions that use swaps in the Aave Labs interface until the situation can be thoroughly investigated and a solution can be put in place. It’s important to note that users are still able to manage their positions by using alternative functions in the Aave Labs interface or by using other third-party interfaces to interact with the protocol. No user funds were impacted, and the tokens that the contract lost belonged to the Aave DAO.

We are continuing our thorough investigation into this incident and will provide more details shortly.