Decentralized finance protocol Aave generated over $6 million in revenue as crypto prices plummeted. Stani Kulechov, founder of Aave, announced on Aug. 5 that the DeFi protocol secured this revenue after navigating the crypto market downturn that had investors reeling on Monday. Aave, which traded higher to hit $117 on Aug. 2, saw lows of $79 on Aug. 5 amid the crypto crash.

Aave Sees $6 Million in Revenue

According to Kulechov, Aave helped secure $21 billion in value during the market decline, resulting in $6 million in revenue for the network. The surge in Aave’s revenue came amid massive liquidations across the market. Bitcoin’s plunge to below $50,000 pulled altcoins lower, contributing to these liquidations. Aave also saw a series of transactions, including one involving $7.4 million worth of wrapped Ether (WETH), which generated $802,000 in revenue for the DeFi protocol.

Aave Protocol withstood market stress across 14 active markets on various L1s and L2s, securing $21B worth of value. Aave Treasury was rewarded with $6M in revenue overnight from decentralized liquidations for keeping the markets safe.

Data shows that the Aave treasury currently holds over $119 million worth of assets. However, recent pullbacks in crypto prices have seen the total value locked on Aave drop to around $16.8 billion, down 27% in the past week.

Crypto Liquidations Surpass $1 Billion

Crypto traders with significant bullish bets on digital asset derivatives have experienced over $1.2 billion in liquidations in the past 24 hours. Long liquidations account for the largest share of these positions, totaling $956 million, while bearish bets currently stand at $265 million. More than 307,000 traders were liquidated as the market mirrored declines seen in stocks. The single largest liquidation order, valued at $27 million, occurred on Huobi.

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