Aave Labs clarified that its proposed V3.8 security upgrade would preserve flash-loan liquidations. The reentrancy guard excludes the flashLoan() and flashLoanSimple() entry points, allowing their callbacks to keep invoking Pool actions, including liquidations. The implementation would use Ethereum’s transient storage under EIP-1153, which remains available during a transaction and is discarded afterward, to keep costs down. The proposal, posted on October 21, still requires review by Certora and additional evaluators, a Snapshot vote, and an on-chain improvement proposal.
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