AAVE

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27/10/2023

AAVE

 

AAVE with THE CURVE

 

According to blockchain sleuth Lookonchain, Curve Finance founder Michael Egorov started borrowing stablecoins on AAVE in April 2023. Of this, $37 million worth of tether (USDT) was sent to crypto exchange Bitfinex, while $51 million worth of USDC was sent to well-known market maker Wintermute.

 

According to Debank, wallets belonging to Egorov posted a total of $188 million in collateral on Aave, of which $64.2 million in USDT was borrowed in an open position This is about 288.7 million CRV tokens, which also represents roughly 34% of the asset’s total supply. If the health rate drops below 1.00, the collateral will be closed automatically.

 

On June 12, 2023, Coin Desk mentioned that Micheal Egorov has deposited $24 million worth of Curve DAO (CRV) tokens to decentralized lending platform Aave to mitigate the liquidation risk of a $65 million stablecoin loan. DeFi risk manager firm Gauntlet has advised Aave to act against the risk posed by Michael Egorov, as it could leave Aave saddled with bad debts.

 

AAVE‘s Bad Debt Experience

 

Nevertheless, in January of this year, AAVE had to repay bad debt positions created after a loss of CRV 2.7 million in the Mango market. But after this experience with the Mango market, Gauntlet's strategy of proposing to freeze all CRV tokens on the AAVE V2 platform and adjust CRV's loan-to-value ratio to zero did not seem to attract the same level of concern, and ultimately the  proposal was not passed.

 

AAVE's Post-Crisis: What Happened Next?

 

Late July 2023 marked a pivotal moment for Aave. A security flaw in Curve Finance led to a significant hacker attack, resulting in a dramatic drop in CRV's price. Aave found itself in the crosshairs of this crisis. Discover the complete narrative – how Aave responded to this challenge, the strategies employed, and the path to recovery. Unlock the complete narrative of Aave's journey during these turbulent times and the strategies that brought them through. You may Download PDF to Read Full Article.

 

Total Value Locked (TVL)

 

Total Value Locked is a metric used to measure the total value of digital assets that are locked or staked in a particular decentralized finance (DeFi) platform or distributed appication (DApp). The higher the TVL, the more trustworthy the platform/DApp is perceived to be.

 

As BinanceFeed reported on July 22, Aave's TVL growth over the past six months has led it to replace MakerDAO (MKR) as TVL's second largest DeFi protocol, behind Lido Finance (LDO), which is still in first place with $14.9 billion TVL. MakerDAO (MKR), which fell 15 % due to the SVB crash on March 10, was in third place of DeFi protocol. Curve Finance, before it was hacked, was in fourth place.

 

Source 4: From DefiLlama

 

Today, Aave is still the second rank DeFi protocol, after Lido Finance (LDO). Curve Finance, on the other hand, was less optimistic, with its TVL falling out of the top 5 DeFi protocol rankings after it was hacked at the end of July.

 

Source 5: From DefiLlama

 

While these snippets provide intriguing glimpses into AAVE's tumultuous journey, there's much more to uncover. In our comprehensive PDF report, you'll find the full narrative, exploring every twist and turn in AAVE's path, including technical analysis. 

 

Want to make an informed decision about AAVE? Unlock the full insights and the journey back to stability in our comprehensive PDF report.

 

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