Aave Founder: Aave Protocol Liquidates Over $450 Million in Collateral in the Past Week

Odaily News Aave founder Stani posted on X, stating that the Aave protocol and the entire DeFi ecosystem have experienced a week of remarkable resilience. Over the past seven days, the protocol liquidated collateral worth over $450 million across multiple networks. For a lending protocol with a size exceeding $50 billion, this represents approximately 0.9% of the total deposits at the time. Meanwhile, Aave continues to accumulate additional revenue.

Bad debts may occur during the lending process, and Aave has built-in mechanisms to handle such situations. Its resilience is attributed to a broad, autonomous liquidation network. Furthermore, a new liquidation engine will be released for Aave V4, bringing greater flexibility and performance to the protocol.

Stani believes that DeFi wins through resilience, transparency, and superior cost structures, and these systems should be applied to all assets within both the crypto space and traditional finance.