DeFi giant Aave achieves $6M revenue in volatile market conditions DeFi giant Aave achieves $6M revenue in volatile market conditions
The DeFi sector was praised for performing optimally despite the broader market turmoil.
2 min read
Updated: Aug. 5, 2024 at 3:02 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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.
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 strong
Aave’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.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Aave
$326.031
Aave is an open source and non-custodial protocol enabling the creation of money markets.
Stani Kulechov is the founder and CEO of Aave, formerly known as ETHLend.