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Amidst the sharp market collapse in the crypto sector, DeFi protocol Aave managed to make a massive $6 million in revenue. This achievement was a remarkable success, while other platforms were under severe pressure. The decline was due to the Bank of Japan rate hike and the publication of the US employment report, which caused anxiety among investors and led to massive selling pressure.
On August 5, 2024, the collapse of Bitcoin and other cryptocurrencies led to liquidations of traders’ positions worth more than $1 billion. Amid the closing of trades, decentralized lending protocol Aave made about $6 million, according to the project’s CEO Stani KULESHOV. He added that Aave’s treasury received a reward of $6 million in just one night, ensuring the “safety of the markets”.
The drop in the Ethereum price led to several large liquidations on Aave, including positions in wETH worth $7.4 million. According to on-chain data from EigenPhi, the deal closed for $802,000 in profit for the protocol team. According to Parsec Finance, liquidations across various DeFi protocols reached $350 million in a day. At the time of writing, TVL in the sector is $79.5 billion, according to DeFillama.
Image: Binance Academy
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