Aave Founder Stani: Over $450 million in collateral liquidated in the past week on the Aave protocol

2026-02-06 10:48:23

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Odaily Planet Daily reports that Aave founder Stani posted on X stating that the Aave protocol and the entire DeFi ecosystem have experienced a highly resilient week. Over the past seven days, the protocol has liquidated collateral worth over $450 million across multiple networks. For a lending protocol with a total value of over $50 billion, this accounts for approximately 0.9% of the total deposits at that time. At the same time, Aave continues to accumulate additional revenue.

Bad debts may occur during lending, but Aave has built-in mechanisms to handle such situations. Its resilience is thanks to a broad and autonomous liquidation network. Additionally, a new liquidation engine will be released for Aave V4, bringing greater flexibility and performance to the protocol.

Stani believes that DeFi wins through resilience, transparency, and superior cost structures, and these systems should be applied to all assets in both the crypto space and traditional finance.

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