How Ethereum’s $600 Mln Whale Exit Exposed Its DeFi’s Hidden Fragility

How Ethereum’s $600 mln whale exit exposed its DeFi’s hidden fragility

Key Takeaways Ethereum's DeFi stack cracked under pressure as one $600 million whale exit from Aave spiked borrow rates, broke LST loops, and forced …

Justin Sun, Whales, Withdraw $1.7 Billion ETH From Aave, What’s Going On?

Digital asset whales have withdrawn $1.7 billion worth of Ethereum (ETH) from Aave in the last seven days. The decentralized finance (DeFi) lending protocol saw heavy outflows, leading to low liquidity and a higher borrowing rate. Crypto whales dominate general market sentiments, and their activities create a ripple effect on the wider market. Few Whale […]

Whales provoked AAVE liquidity deficiency - World Stock Market

Over the past week, whales withdrawn significant volumes of Ethereum from the AAVE lending protocol, causing an increase in financing rates and a sharp closure of some positions. On some days, APY in positions in Weth exceeded 10%. In this case, liquidity suppliers were winning, but users occupying assets are vice versa. Suddenly, traders who were engaged in luping, a strategy for making a profit from steiking Ethereum, began to lose money by re…

$1.7B ETH Exodus Shakes Aave! Borrowing Rates Skyrocket Past 10% - Crypto Economy

TL;DR Whales withdrew $1.7B in ETH from Aave, forcing a simultaneous unwind of $1.2B in staked ETH positions (like wstETH), flooding the market with sell pressure. ETH borrowing rates on Aave surged from ~1.4% to over 10.5% due to the massive liquidity drain, creating a $500M+ gap and pushing utilization to dangerous highs. The exodus exposed a critical flaw in Aave’s model, highlighting the conflict between providing borrowing liquidity and st…

DeFi Whales Withdraw $1.7B from Aave Pushing Ethereum Borrowing Rates Over 10%

DeFi whales have withdrawn a total of $1.7 billion worth of Ethereum from Aave, a leading lending protocol on the Ethereum blockchain, over the past week [1]. This mass exodus has triggered a sharp contraction in available liquidity, pushing Aave’s borrowing interest rates to over 10%—a significant increase from typical levels. The protocol, which holds over $55 billion in deposits, operates by allowing users to earn interest on deposited assets…