Aave Makes $6 Million in Revenue Amid Crypto Market Slump

The founder of decentralized finance (DeFi) protocol Aave reported that the platform has generated $6 million in revenue as the crypto market sell-off continues.

The decline took hold of the market after last week’s decision by the Bank of Japan to raise interest rates and Friday’s U.S. employment report. Ether (ETH) has lost more than 20% in the past 24 hours, while aave (AAVE) has lost 23.7% of its market value.

The sale led to the liquidation of approximately $1 billion in crypto derivatives markets and $350 million in DeFi protocols, according to Parsec Finance.

“The Aave Protocol withstood market stress across 14 active markets across various L1s and L2s, keeping $21 billion worth of assets safe. In return, it recorded $6 million in revenue from decentralized liquidations overnight,” Aave’s Stani Kulechov wrote on Twitter.

According to on-chain data, the drop in crypto prices led to several liquidations on Aave, including a $7.4 million wrapped ether (WETH) position that generated $802,000 in revenue for the company.

According to DefiLlama data, the total value locked (TVL) in DeFi protocols was $100 billion at the beginning of the month but has currently dropped to $71 billion.