The decentralized finance protocol Aave managed to earn over $6 million despite the sharp decline in cryptocurrency values.
The founder of Aave, Stani Kulechov, stated in a post on X on August 5 that the revenue was secured via the DeFi protocol following the Monday drop in the cryptocurrency market that left investors reeling.
Aave had increases in price to $117 on August 2 and lows of $79 on August 5 due to a cryptocurrency crash.
Kulechov claims that while the network received $6 million in revenue, Aave secured $21 billion in value among the carnage.
Aave’s revenue increase coincided with the widespread market liquidations that occurred as altcoins fell due to Bitcoin’s decline to less than $50k.
Aave also witnessed a number of these transactions, one of which brought in $7.4 million in wrapped Ether (WETH) and brought in $802,000 for the DeFi protocol.Â
“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.”
The Aave treasury presently has assets valued at about $119 million, according to DefiLlama data. The entire value locked on Aave has decreased by 27% in the last week to around $16.8 billion, despite declines in cryptocurrency prices.
Cryptocurrency Sales Exceed $1 billion
In the last 24 hours, more than $1.2 billion has been liquidated by cryptocurrency traders who made large, bullish wagers on digital asset derivatives.
With $956 million, long liquidations make up most of the rekt positions, while bearish bets total $265 billion.
More than 307,000 traders liquidated as the market mimicked stock falls, according to Coinglass statistics. The market’s single largest liquidation order, $27 million, occurred on Huobi.
