Decentralized finance protocol Aave liquidated over $450 million worth of collateral over the past seven days as crypto markets experienced a sharp pullback.
The liquidations occurred across multiple networks and were driven by falling collateral prices, a common dynamic during periods of heightened volatility in overcollateralized lending systems.
While large in absolute terms, Aave founder Stani Kulechov said on X that the liquidations represented less than 1% of the protocol’s total deposits at the time.
The activity coincided with increased market volatility as large-cap cryptocurrencies like Bitcoin and Ethereum experienced double-digit percentage drops.
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