Aave Protocol Demonstrates Resilience Amid Significant Collateral Liquidations

Aave founder Stani recently shared on the X platform that the Aave protocol and the broader DeFi sector have shown remarkable resilience over the past week. According to Odaily, the protocol has cleared collateral worth over $450 million across multiple networks in the last seven days. This represents approximately 0.9% of the total deposits at the time for the lending protocol, which exceeds $50 billion. Additionally, Aave continues to accumulate extra revenue. The lending process may encounter bad debts, but Aave has built-in mechanisms to address such situations. Its resilience is attributed to a comprehensive, autonomous liquidation network. Furthermore, a new liquidation engine will be released for Aave V4, enhancing the protocol's flexibility and performance. Stani believes that DeFi succeeds through resilience, transparency, and superior cost structures, and these systems should be applied to all assets in both the crypto sector and traditional finance.