Aave Protocol Withstood Market Stress, Secured $21B Worth of Value Amid Bloodbath
- WBOYOriginal
- 2024-08-06 03:23:11988browse
Stani Kulechov, founder of Aave (AAVE), said in a post on X on Aug. 5 that the DeFi protocol secured the revenue after navigating the crypto market
Aave (AAVE) generated more than $6 million in revenue as crypto prices plummeted on Monday, revealing the strength of decentralized finance protocols in navigating market downturns.
Stani Kulechov, founder of Aave, highlighted the protocol's performance in a post on X on Aug. 5. Aave's revenue generation comes as crypto prices plunged on Monday, with investors left reeling from the sharp downturn. Aave, which traded higher to hit $117 on Aug. 2, saw its lows of $79 on Aug. 5 amid a crypto crash.
Aave protocol helped secure $21 billion in value amid the bloodbath, Kulechov noted, adding that the network was rewarded with $6 million in revenue.
Aave's revenue surged amid the massive liquidations witnessed across the market as Bitcoin's (BTC) plunge to below $50k pulled altcoins lower. Aave also saw a series of such transactions, with one involving $7.4 million in wrapped Ether (WETH), which resulted in $802,000 in revenue for the DeFi protocol.
“Aave Protocol withstood market stress across 14 active markets on various L1s and L2s, securing $21B worth of value,” Kulechov said. “Aave Treasury was rewarded with $6M in revenue overnight from decentralized liquidations for keeping the markets safe.”
According to DefiLlama, the Aave treasury currently holds over $119 million in assets. However, pullbacks in crypto prices saw the total value locked on Aave drop to around $16.8 billion, down 27% in the past week.
Crypto liquidations cross $1 billion as market mirrors stock declines
Crypto traders with massive bullish bets on digital asset derivatives have seen more than $1.2 billion liquidated in the past 24 hours.
Of the total liquidations, long liquidations account for the largest share at $956 million, while bearish bets currently stand at $265 billion. According to Coinglass data, more than 307,000 traders liquidated as the market mirrored declines across stocks.
The market's single largest liquidation order, amounting to $27 million, was recorded on Huobi.
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