Aave nets $6m in revenue amid crypto plunge

Decentralized finance protocol Aave has raised more than $6 million as cryptocurrency prices plummet.

Aave (AAVE) founder Stani Kulechov said in a post on X on August 5 that the DeFi protocol has secured revenue after weathering the crypto market crash that rocked investors on Monday. Aave traded at a high of $117 on August 2 and then dropped to $79 on August 5 amid the crypto crash.

Aave generates $6 million in revenue

According to Kulechov, Aave helped the network reach a valuation of $21 billion, with the network generating $6 million in revenue during the bloody events.

Aave’s revenue surge comes amid massive liquidations in the market, with Bitcoin (BTC) falling below $50,000, pulling altcoins lower. Aave also saw a series of such transactions that included $7.4 million worth of wrapped Ether (WETH), generating $802,000 in revenue for the DeFi protocol.

“Aave Protocol withstood market stress across 14 active markets across various L1s and L2s and captured $21 billion in value,” Kulechov noted. “Aave Treasury was rewarded with $6 million in revenue overnight from decentralized liquidations for keeping markets secure.”

DefiLlama data shows that the Aave treasury currently holds more than $119 million in assets. However, pullbacks in crypto prices have caused the total value locked in Aave to drop by 27% in the past week to around $16.8 billion.

Crypto liquidations exceed $1 billion

Crypto traders placing big bullish bets on digital asset derivatives saw more than $1.2 billion liquidated in the past 24 hours. Long-term liquidations account for the largest share of rect positions at $956 million, while bearish bets currently stand at $265 billion.

More than 307,000 traders liquidated as the market reflected declines in stocks, according to Coinglass data. The market’s largest liquidation order, $27 million, occurred on Huobi.