Cash News
Decentralized finance protocol Aave generated more than $6 million in revenue as the crypto prices plummeted.
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 plunge that had investors reeling on Monday. Aave, which traded higher to hit $117 on Aug. 2, followed by lows of $79 on Aug. 5 amid a crypto crash.
Aave sees $6 million in revenue
According to Kulechov, Aave helped secure $21 billion in value amid the bloodbath, as the network was rewarded $6 million in revenue.
Aave’s revenue surge came amid the massive liquidations witnessed across the market as Bitcoin (BTC)’s plunge to below $50k pulled altcoins lower. Aave also saw a series of such transactions, with one involving $7.4 million worth of wrapped Ether (WETH), resulting 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 noted. “Aave Treasury was rewarded with $6M in revenue overnight from decentralized liquidations for keeping the markets safe.”
DefiLlama data shows the Aave treasury currently holds over $119 million worth of assets. However, pullbacks in crypto prices have seen the total value locked on Aave drop to around $16.8 billion, down 27% in the past week.
Crypto Liquidations Surpass $1 Billion
Crypto traders with massive bullish bets on digital asset derivatives have seen more than $1.2 billion liquidated in the past 24 hours. Long liquidations account for the largest share of the rekt positions with $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, $27 million, occurred on Huobi.