Even with the severe decline in the cryptocurrency market, DeFi protocol Aave generated a whopping $6 million in revenue. Considering the intense pressure on other platforms, this accomplishment was a remarkable success. The release of the US jobs report and the Bank of Japan’s rate hike, which alarmed investors and resulted in intense selling pressure, were the causes of the decrease.
When Bitcoin and other cryptocurrencies crashed on August 5, 2024, traders’ holdings worth over $1 billion had to be liquidated. According to the project’s CEO Stani KULESHOV, the decentralized lending protocol Aave made almost $6 million during the close of trades. He continued by saying that Aave’s Treasury was rewarded $6 million in a single night, guaranteeing the “safety of the markets.”
Aave had multiple significant liquidations due to the decline in Ethereum’s value, including the sale of $7.4 million worth of wETH positions. EigenPhi’s on-chain data indicates that the protocol team made $802,000 profit on the deal after it closed. Parsec Finance reports that in a single day, liquidations using different DeFi protocols totaled $350 million. According to DeFillama, TVL in the industry is $79.5 billion as of this writing.