Aave founder: Over $450 million in collateral liquidated on Aave protocol in the past week

According to Odaily, Aave founder Stani posted on X stating that the Aave protocol and the entire DeFi sector have experienced an extremely resilient week. Over the past seven days, the protocol has liquidated collateral worth more than $450 million across multiple networks. For a lending protocol with a scale exceeding $50 billion, this accounts for about 0.9% of the total deposits at that time. Meanwhile, Aave continues to accumulate additional revenue.

Bad debts may occur during the lending process, and Aave has built-in mechanisms to handle such situations. Its resilience is attributed to a broad and autonomous liquidation network. In addition, a new liquidation engine will be released for Aave V4, bringing greater flexibility and performance to the protocol.

Stani believes that DeFi wins through resilience, transparency, and a superior cost structure, and that these systems should be applied to all assets in both the crypto space and traditional finance.