Aave founder: Aave protocol liquidated over $450 million in collateral in the past week.

Aave founder Stani stated in an article on the X platform that the Aave protocol and the entire DeFi space have experienced an exceptionally resilient week. Over the past seven days, the protocol has liquidated over $450 million worth of collateral across multiple networks. For a lending protocol with a scale exceeding $50 billion, this represents approximately 0.9% of total deposits at the time. Simultaneously, Aave continues to accumulate additional revenue. Bad debts can occur during the lending process, and Aave has built-in mechanisms to handle such situations. Its resilience benefits from a broad, autonomous liquidation network. Furthermore, a new liquidation engine will be released for Aave V4, bringing greater flexibility and performance to the protocol. Stani believes that DeFi succeeds through resilience, transparency, and a superior cost structure, and these systems should be applied to all assets in the crypto space and traditional finance.