Aave Founder: Aave Protocol Liquidated Over $450 Million in Collateral in the Past Week

ZkProver · 2026-02-06T11:28:40+00:00

Aave founder Stani stated that the Aave protocol has demonstrated resilience over the past week, liquidating over $450 million in collateral and continuously accumulating revenue. Aave has mechanisms to handle bad debt and will introduce a new liquidation engine to enhance flexibility and performance. Stani emphasized that the resilience and transparency of DeFi should be applied to both crypto and traditional finance.

ZkProver

2026-02-06 11:28:40

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ChainCatcher News, Aave founder Stani posted on X platform stating that the Aave protocol and the entire DeFi sector 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. Meanwhile, Aave continues to accumulate additional revenue.

Bad debt may occur during lending, but Aave has built-in mechanisms to handle such situations. Its resilience is supported by an extensive, 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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