Aave (AAVE) Records $2.1M in Daily Revenue Following a Wave of Loan Liquidations

Aave (AAVE), a leading decentralized finance (DeFi) lending platform, recorded a remarkable $2.1 million in daily revenue following a wave of loan liquidations.

DeFi lending platform Aave (AAVE) saw a wave of loan liquidations, leading to an impressive $2.1 million in daily revenue. Aave founder Stani Kulechov proudly announced the platform's resilience in a post on X, highlighting the $21 billion in value secured across 14 active markets on various L1s and L2s, and the $6 million in revenue generated from decentralized liquidations to keep the markets safe.

This revenue figure, mentioned by Kulechov, is based on projections from liquidation fees collected early Monday morning. Among the different Aave deployments, v3 on Ethereum stood out with the highest contribution, accumulating $1.25 million in liquidation fees on August 6.

In total, liquidations on Aave v3 reached $234 million, including $137 million in Wrapped Ether (WETH), $62 million in Wrapped stETH (wstETH), and $21 million in Wrapped Bitcoin (WBTC).

One particular wallet, identified as 0x645…c4bfa, experienced a significant impact with $73 million in liquidations. This single event accounted for 31% of the total collateral liquidated on v3.

Aave, like other lending platforms, generates revenue through interest and liquidation fees. In a crucial move preceding the market decline, Aave DAO conducted its first temperature check on a governance proposal aiming to return protocol revenue to AAVE token holders. According to Marc Zeller, founder of the Aave DAO delegate Aave Chan Initiative, this proposal may be implemented by the end of 2024.

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