#Write2earn
DeFi Protocols Face Major Liquidations Amid Crypto Market Turbulence
#DeFiLiquidation #AAve #WrappedETH $AAVE

Record Liquidations on Aave v3
Aave v3: Processed $253.4 million in liquidations on August 5, accounting for 59% of its all-time liquidations, totaling $428.9 million.
Top Assets: Wrapped ETH (WETH) led with $146.7 million, followed by Wrapped stETH (wstETH) at $68.4 million, and Wrapped Bitcoin (WBTC) at $24.3 million.
Interest rates on ETH deposits temporarily spiked to 14%, later dropping to 2%.

Market-Wide Sell-Off
Crypto Declines: Bitcoin fell 13%, Ethereum 20%, and Solana 16%, pushing the crypto market below $2 trillion.
Global Impact: Japan’s Nikkei 225 dropped 12.4%, South Korea’s KOSPI fell 8.77%, and Taiwan’s Taiex decreased 8.35%.

DeFi Margin Calls
Other Protocols: MakerDAO’s Spark Protocol saw $35 million in liquidations, 80% of its total. Compound faced $34.8 million in margin calls, led by WBTC ($22M), WETH ($9.37M), and Chainlink (LINK) ($2.85M).Additional Liquidations: Morpho Blue hosted $18.1 million in liquidations. Lido’s stETH dropped from over 0.999 ETH to 0.983 ETH before rebounding to 0.99 ETH.

Potential Market Rebound
Signs of Capitulation: Santiment analysis suggests heavy liquidations could indicate an end to the downturn, potentially followed by market rebounds due to opportunistic buying.

DeFi Sector Impact
TVL Drops: The DeFi sector’s total value locked (TVL) dropped to $111.5 billion, its lowest since February, with over $24 billion wiped out in one day, marking a 17% decrease.

Conclusion
The recent liquidations underscore the volatility and interconnectedness of the DeFi and crypto markets. Investors should stay vigilant during these uncertain times.

#Write2earn
Aave Supports Lido with New Deployment
#AAve #LIDO $AAVE $lido #LST

Aave has launched a Lido-focused deployment of Aave v3 to support recursive stETH borrowing, promoting the adoption of Lido’s stETH liquid staking token (LST).

Proposal Approval and Deployment
On June 20, the Aave community approved this initiative, emphasizing the profitable symbiotic growth between Aave and Lido. The deployment will support wETH and wstETH assets, with a borrowing cap for wETH set at 90%.

Statistics
Aave: 3rd largest DeFi protocol with a TVL of $12.3 billion (DeFi Llama).Lido: Largest LST with a TVL of $33.6 billion, accounting for 28.8% of staked Ether (Dune Analytics).AAVE price: Down 2.3% in the past 24 hours.LDO token: Up 3.2%.

Lido Alliance
Lido formed the Lido Alliance in mid-May to develop stETH infrastructure, attracting nearly $1.23 billion in ETH over the past 30 days. The alliance includes the Symbiotic protocol and Mellow, a liquid restaking protocol.

Aave on ZkSync Era
Aave’s community approved deploying Aave v3 on ZkSync Era, a Layer 2 network with a TVL of $1.38 billion, following ZkSync’s airdrop. This marks Aave’s eighth Ethereum scaling deployment and second on a zkEVM network.

Additional Proposals
Deploying GHO stablecoin on Arbitrum.Launching USDC.e pools on Gnosis Chain.Issuing 600,000 GHO to the Aave Liquidity Committee.