Aave (AAVE)

Risk management is what separates sustainable lending protocols from the rest. @aave generated $11.9M in June despite a 20%+ ETH selloff, proving why it remains DeFi's leading lending protocol. Here's the TL;DR of @Token_Logic's Aave June report. — ➤ Why Aave Earned More During the Selloff Aave turned June's volatility into higher revenue instead of higher losses. • $11.9M protocol revenue, nearly 2x May • $6.2M net income • Liquidations and repayments drove higher protocol fees The selloff translated directly into stronger protocol earnings. — ➤ Where Aave's Revenue Came From Aave's revenue remained diversified across multiple income streams. • Borrow interest: $4.5M • Liquidation fees: $2.9M • @chainlink SVR: $2.8M Borrow interest remained the largest contributor, while the selloff boosted liquidation fees. $LINK SVR redirected MEV back to the protocol, contributing $2.8M in June. — ➤ Aave V4 Continued Growing Despite the selloff, Aave V4 continued attracting users and capital. • Deposits: $119M → $232M (+94%) • Active loans: $33M → $76M (+130%) Loan growth matters more than deposits because it reflects active borrowing, not idle capital. — Aave processed $236M across 17,850 liquidations without disruption, validating its risk engine when it mattered most. With deposits back above $25B and V4 continuing to grow, the data suggests users are allocating capital based on resilience, not incentives. That's why $AAVE continues to set the benchmark for DeFi lending.

Monad TVL at ~$500M as the Monad market on Aave surpassed $200M in total market size Monad season https://t.co/YGD3JmKzxs

AAVE DAO Treasury Surpasses $155 Million ➡️ $AAVE DAO's treasury has surpassed $155 million, with AAVE comprising 54% of total holdings. ➡️ The remaining allocation includes stablecoins, $ETH-correlated assets, $BTC-correlated assets, and #DeFi holdings. #CoinPedia #Crypto #Web3 #Bitcoin #Ethereum

DeFi is not just about yield. This is a core concept that beginners must understand. Many people are attracted to DeFi by the promise of high yields. However, before chasing APY, there are several more important basic concepts to grasp so as not to take a wrong step. 1⃣ Lending & Borrowing Mechanism In protocols such as Aave or Compound, you can lend assets to earn interest (lending) or borrow assets by providing collateral (borrowing). Almost all loans are over‑collateralized, meaning the collateral value must exceed the amount borrowed. If the collateral value falls below a certain threshold, the position can be automatically liquidated. This is the fundamental basis of DeFi lending. 2⃣ Automated Market Maker (AMM) on DEX Unlike traditional exchanges that use an order book, DEXs like Uniswap employ AMMs. Prices are automatically determined by a mathematical formula based on the ratio of the two assets in the liquidity pool. Traders can swap directly with the pool without waiting for a counterparty. This enables decentralized exchanges to operate 24/7 without intermediaries. 3⃣ Liquidity Providing and Impermanent Loss You can become a liquidity provider (LP) by supplying two assets to an AMM pool and earning a share of the trading fees. However, there is a risk called impermanent loss, which occurs when the prices of the two assets change significantly; the value of your assets in the pool may be lower than if you simply held them. This risk increases with high volatility. 4⃣ Basics of Governance Many DeFi protocols are run in a decentralized manner through a DAO (Decentralized Autonomous Organization). Governance token holders can vote to approve or reject protocol change proposals, ranging from risk parameters to feature upgrades. This is how the community makes decisions without a central authority. Understanding these four concepts will help you see that DeFi is not merely about “chasing yield”, but a new financial system with its own mechanisms, risks, and incentives. Which DeFi concept do you find the most difficult to understand at first?

June has been a great month for Aave.

Aave saw $867M in net USD inflows in the first 7 days of July. Keep in mind this has nothing to do with price movements of deposited assets. This is fresh capital flowing into @Aave as liquidity returns to the protocol. Data by DeFiLlama. https://t.co/tuzMNNyJSC

Proposal to add syrupUSDG to the dedicated Global Dollar (USDG) Hub.

Aave's Monad market just crossed the $200M mark. @monad's TVL + active loans just reached $900M, having recently surpassed Sui and Avalanche, and it's showing no signs of slowing down. The @aave effect is real. Monad summer is real. https://t.co/mUe6WeImGW