The protocol froze lending on 17 cryptocurrencies, including five stablecoins. The suspended stablecoins include sUSD, USDP, LUSD, GUSD and RAI.
The other assets affected are Yearn Finance (YFI), Decentraland, 1inch (1INCH), Curve Finance (CRV), 0x (ZRX), Basic Attention Token (BAT), Enjin (ENJ), RENFIL, MakerDAO (MKR), xSUSHI, Ampleforth (AMPL), and DeFi Pulse Index (DPI).
You can read the proposal here, that includes a full list of tokens affected.
Now, freezing assets is a naive way to mitigate some potential disasters. It is the panic response of staring into the abyss.
"A proposal to make parameter changes on Aave V2 ETH. Given that the market situation of these assets is currently volatile, out of an abundance of caution, we recommend temporarily freezing the following markets," the proposal reads.
Obviously the current protocols are not good enough. Freezing assets is an admission of failure, but I hope this will lead to better, more flexible, more responsive defi algorithms.