The decentralized borrowed protocol Aave has successfully processed $ 210 million in liquidity without adding its existing poor debt.
data from Caos Labs Shows that after Monday’s flash crash, which eliminated the $ 2.2 billion in the Crypto market price, extreme market volatility led the sudden spike in liquidation in the protocol. Liquidity up to $ 210 million, the largest such single-day liquidation since August 5 accident.
Typically, the duration of high volatility creates conditions for poor loans because the correct storm of many liquidity requests, the decline in the steep value and the low demand forms long liquidity queues that can struggle to clarify a protocol.
Facing this situation on Monday, AAVEE, whatever is for tension testing without adding any fresh loan, and even bad debt assets reduced the value of assets and 2.7 percent to its existing poor debt kul Had managed to reduce till
Analyzing successful liquidation, Caos Labs said in a post on X:
The liquidity in the protocol was executed efficiently, most of which atheriums were performed on the main example. The strong risk management mechanism within AAVE ensured that the collateral positions were fixed as an intention, the protocol loss was reduced.
The breakdown of liquidation suggests that WEth calculated $ 96 million, while the WBTC had an account of $ 25 million. The value of $ 20 million was also liquid, as Westhth of $ 11 million. A basket of small assets, including RETH and CBBTC, created the remaining recorded liquidation.
The market response to Aave’s performance was filled with praise, in which analysts appreciated the protocol for investigation including Bitwaiz Cio Mat Hogan.
On 7 January, Aave confirmed its deployment on APTOS Testnet, its first non-EVM sins, Aptos, Botanix Labs Spider Chain, Linea, Mantle, and share of your ambitious plan to expand the deployment in 6 new chains As, and sonic.
