$350 million worth of DeFi positions were liquidated during the market sell-off.
Aave secured $6 million in revenue from processing on-chain liquidations.
One $7.4 million WETH position was liquidated, providing Aave with $802,000 in revenue.
The founder of decentralized finance (DeFi) protocol Aave said the platform generated $6 million of revenue during Monday’s crypto market sell-off.
The plunge trickled down to DeFi after last week’s Bank of Japan decision to hike interest rates and Friday’s U.S. jobs report. Ether (ETH) is down by more than 20% over the past 24 hours whilst aave (AAVE) has lost 23.7% of its market cap.
The sell-off led to more than $1 billion being liquidated across crypto derivatives markets, with a further $350 million liquidated on DeFi protocols, according to Parsec Finance.
“Aave Protocol withstood market stress across 14 active markets on various L1s and L2s, securing $21B worth of value,” Aave’s Stani Kulechov wrote on X. “Aave Treasury was rewarded with $6M in revenue overnight from decentralized liquidations for keeping the markets safe.”
The decline in crypto prices led to several liquidations on Aave, including a $7.4 million wrapped ether (WETH) position, which yielded revenue of $802,000 for the company, according to on-chain data.
The total value locked (TVL) on DeFi protocols is now at $71 billion having dropped from $100 billion at the turn of the month, DefiLlama data shows.
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