Defi Giant Aave Rakes in $6M in Revenue as Crypto Market Plunges

$350 million worth of DeFi positions were liquidated during the market sell-off.

Aave generated $6 million in revenue from processing on-chain liquidations.

A $7.4 million WETH position was liquidated, generating $802,000 in revenue for Aave.

The founder of decentralized finance (DeFi) protocol Aave said the platform generated $6 million in revenue during Monday’s cryptocurrency market sell-off.

The decline spilled over into DeFi following the Bank of Japan’s decision to hike interest rates last week and the US jobs report on Friday. Ether {{ETH}} has fallen more than 20% in the past 24 hours, while aave {{AAVE}} has lost 23.7% of its market value.

The sales led to the liquidation of more than $1 billion in crypto derivatives markets, while another $350 million was liquidated in DeFi protocols, according to Parsec Finance.

“The Aave Protocol withstood market stress across 14 active markets across various L1s and L2s, capturing $21 billion in value,” wrote Aave’s Stani Kulechov on X. “The Aave Treasury was rewarded with $6 million in revenue overnight from decentralized liquidations for keeping markets secure.”

The drop in cryptocurrency prices led to several liquidations on Aave, including a $7.4 million wrapped ether (WETH) position that earned the company $802,000 in revenue, according to on-chain data.

According to DefiLlama data, the total value locked (TVL) in DeFi protocols has now reached $71 billion, down from $100 billion at the beginning of the month.