Large Withdrawals from Aave Trigger Liquidity Shortage
In the past week, whales have withdrawn significant amounts of Ethereum from the lending protocol Aave, leading to increased funding rates and the abrupt closure of some positions. Supplier and borrower rates on Aave. Source: Aave. On certain days, the APY on wETH positions exceeded 10%. In this scenario, liquidity providers benefited, while asset borrowers […]