Aave (CRYPTO:AAVE), a decentralised finance (DeFi) protocol, generated over $6 million in revenue as crypto prices plummeted.
Stani Kulechov, founder of Aave, announced on August 5 that the protocol secured this revenue amid a market downturn that left investors reeling.
Aave traded at a high of $117 on August 2 but fell to $79 by August 5 during the crypto crash.
Despite the market turmoil, Aave helped secure $21 billion in value, earning $6 million in revenue.
This surge came amid widespread liquidations in the market as Bitcoin (CRYPTO:BTC) plunged below $50,000, dragging altcoins down with it.
Aave saw significant transactions during this period, including one involving $7.4 million worth of wrapped Ether (CRYPTO:WETH), which resulted in $802,000 in revenue for the protocol.
Kulechov highlighted that the Aave protocol withstood market stress across 14 active markets on various Layer 1 and Layer 2 networks, securing $21 billion worth of value.
The Aave treasury currently holds over $119 million worth of assets, according to DefiLlama data.
However, the pullback in crypto prices has caused the total value locked on Aave to drop to around $16.8 billion, a 27% decrease over the past week.
Crypto liquidations surpassed $1 billion as traders with massive bullish bets on digital asset derivatives faced significant losses.
In the past 24 hours, long liquidations accounted for $956 million of the $1.2 billion liquidated, while bearish bets stood at $265 million.
Coinglass data shows that over 307,000 traders were liquidated as the market mirrored declines across stocks.
The largest single liquidation order, valued at $27 million, occurred on Huobi.
Despite the challenging market conditions, Aave demonstrated resilience and managed to secure significant revenue, highlighting the strength and stability of its DeFi protocol during periods of market stress.