Aave Labs said on October 23 that its proposed V3.8 security upgrade would preserve flash-loan liquidations. The proposed reentrancy guard would exclude flashLoan() and flashLoanSimple(), allowing their callbacks to keep calling Pool functions, including liquidations.
The proposal was posted October 21, but governance approval and security audits are still pending. Aave Labs’ statement describes the intended design; whether integrations work as intended will depend on the code ultimately approved and deployed.
