Aave rakes in $6 million in revenue amid crypto slump

Aave founder Stani Kulechov said in an X post on Aug. 5 that the DeFi protocol secured revenue after weathering the crypto market crash that rattled investors on Monday.

Aave, traded higher and reached $117 on August 2, followed by a low of $79 on August 5 amid the crypto crash.

According to Kulechov, Aave helped secure $21 billion in value amid the bloodbath, as the network was rewarded with $6 million in revenue. Aave's surge in revenue came amid a market that saw massive liquidations in Bitcoin.

The drop below $50,000 dragged altcoins lower. Aave also saw a series of such transactions, including one involving $7.4 million in wrapped Ether (WETH), generating $802,000 in revenue for the DeFi protocol.

“The Aave protocol withstood the market pressure across 14 active markets across multiple L1s and L2s, securing $21 billion in value,” Kulechov noted. “The Aave Treasury was rewarded with $6 million in overnight revenue from decentralized liquidations for keeping the market safe.”

DefiLlama data shows that the Aave treasury currently holds more than $119 million in assets. However, the pullback in cryptocurrency prices has caused the total value locked on Aave to fall to about $16.8 billion, down 27% over the past week.

Cryptocurrency Liquidations Surpass $1 Billion

Cryptocurrency traders with large bullish bets on digital asset derivatives have seen more than $1.2 billion liquidated in the past 24 hours. Long liquidations account for the largest share of rekt positions at $956 million, while bearish bets currently stand at $265 billion.

According to Coinglass data, more than 307,000 traders liquidated as the market reflected the decline across stocks. The market’s largest liquidation order, $27 million, occurred on Huobi.