29/09/2024
DeFi giant Aave achieves $6M revenue in volatile market conditions
The DeFi sector was praised for performing optimally despite the broader market turmoil.Leading DeFi platform Aave Protocol generated over $6 million in revenue during the current market downturn.On-chain data
shows that Aave earned $802,000 from a $7.4 million wrapped Ether
(WETH) liquidation, reflecting a surge in liquidation activity on the
platform. Overall, Aave V3 saw $233 million in liquidations, the
protocol’s highest single-day figure, according to Blockanalitica.Due to these significant activities, Aave Founder Stani Kulechov revealed that the protocol earned $6 million in just one night from facilitating liquidations. He said:“Aave
Protocol withstood market stress across 14 active markets on various
L1s and L2s, securing $21 billion worth of value. Aave Treasury was
rewarded with $6 million in revenue overnight from decentralized
liquidations for keeping the markets safe.”Kulechov emphasized that the protocol’s revenue from these liquidations
reflects its resilience and demonstrates why building in DeFi is
crucial. Aave’s Revenue (Source: TokenLogic) Marc Zeller, the founder of Aave Chain, corroborated Kulechov’s
statement and pointed out that the platform was thriving amid the
broader market turmoil. He wrote:“Aave protocol remains robust no bad debt, revenue ATH & Fee switch TEMP CHECK vote approved.”According to DeFillama data, Aave is the largest crypto-lending platform
in the industry, primarily based on the Ethereum network. As of press
time, the total value of assets locked on the platform stood at around
$9.8 billion.DeFi stands strongAave’s robust performance over the past day, despite recent market volatility, reflects a broader trend within the DeFi sector.DeFi researcher Ignas pointed out that crucial DeFi protocols functioned smoothly during the jittery market without many complaints.According
to him, there have been no significant increases in Lido’s stETH
withdrawal queue, and liquid staking asset assets experiencing minimal
depegging—with weETH falling by 1%, ezETH by 0.6%, and stETH by 0.4%
from ETH.He furthered that although ETH gas fees spiked to 370
gwei, they have since stabilized around 20 gwei. Additionally, there are
no significant liquidation risks for DeFi unless ETH falls to $1,771 or
WBTC to $31,000.
The DeFi sector was praised for performing optimally despite the broader market turmoil. Leading DeFi platform Aave Protocol generated ove...
