Aave Processes $4.65B in Liquidations Since 2020, Recaptures $16M in MEV
Aave Processes $4.65B in Liquidations Since 2020, Recaptures $16M in MEV
💰 Aave's $4.65B liquidation milestone
Key Liquidation Metrics
- Since 2020, Aave has processed over 310,000 liquidations worth $4.65 billion across all networks
- Ethereum accounts for 75% of total liquidation volume in USD, but non-Ethereum networks handle the majority of liquidation events by count
- Liquidations typically spike during sharp market downturns
MEV Recapture Success
In March 2025, Aave integrated Chainlink's Smart Value Recapture (SVR) into its Ethereum market. By February 2026:
- Processed $675M across ~3,900 liquidations
- Captured approximately $16M in MEV for the Aave DAO
- Achieved a 73% non-toxic MEV recapture rate
This integration allows the protocol to reclaim value from liquidation-related MEV that would otherwise go to external actors.
Read the full analysis here: aave.com/blog/historica…
From Aave's launch in 2020 through the first week of February, the protocol processed over 310,000 liquidations, totaling $4.65 billion in value. Liquidations typically surge during sudden, steep price drops in the market.
Across all networks, three-quarters of Aave's total liquidation volume (in USD terms) has occurred on Ethereum. However, when measured by the total count of liquidation events, the pattern reverses with non-Ethereum networks accounting for the majority of transactions.
In March 2025, Aave integrated @chainlink SVR into its Ethereum market, reclaiming liquidation-related MEV for the Aave DAO. By February 2026, it processed $675m across ~3,900 liquidations, capturing ~$16 million and achieving a 73% non-toxic MEV recapture rate.
DeFi Liquidation Data Reveals BTC Shorting Preference Over ETH
Recent liquidation data shows stablecoins account for over 90% of debt repayments in DeFi protocols. A notable pattern emerges: ETH-related debt repayments are nearly three times lower than BTC-related ones. **Key findings:** - Stablecoins dominate liquidation repayments at 90%+ - BTC borrowing significantly exceeds ETH borrowing - Data suggests DeFi users prefer shorting BTC over ETH - ETH and BTC assets remain primary collateral during deleveraging - Long-tail assets represent 10%+ of liquidated value despite smaller deposit share The disparity in debt repayments indicates different trading strategies between the two major crypto assets, with users showing greater inclination to take short positions on Bitcoin through borrowing mechanisms.
Aave Becomes DeFi Yield Standard as Cap Money Integration Shows Protocol Maturity
Aave has evolved beyond a lending protocol to become a **yield benchmark** for the DeFi ecosystem. A new case study examines how Cap Money leverages Aave as a foundational yield source and integrates its rates into their Credit Engine. This development highlights Aave's growing role as **infrastructure for financial applications**. The protocol now provides: - Sustainable yield generation for protocols building on top - Standardized rate benchmarks for credit systems - Reliable liquidity infrastructure for next-generation apps The timing aligns with Maple's rapid growth on Aave, which scaled to over $750M in assets within six months, demonstrating strong demand for institutional-grade DeFi yields.
Rabby Mobile Integrates Aave Lending Protocol
**Rabby Mobile now supports Aave Protocol**, enabling users to borrow and earn yield directly from their mobile devices. - Users can access Aave's lending network with simplified mobile interface - Integration follows Aave's consumer-focused mobile app announcement from January - Part of broader embedded DeFi trend that gained momentum in 2025 Rabby Mobile also supports other lending protocols including Spark and Venus, allowing users to switch between platforms seamlessly. This integration makes DeFi lending more accessible to mobile users without requiring separate applications.
Aave Emerges as Critical Growth Engine for New Stablecoins
**Aave has become the primary growth platform for emerging stablecoins**, with newer tokens depositing larger percentages of their supply on the protocol. **Key findings:** - Global stablecoin supply surpassed $300 billion in 2025 - RLUSD grew from $250M to $1.3B after Aave integration - $800M of RLUSD deposited on Aave (nearly 2/3 of total supply) - PayPal's PYUSD also saw significant expansion post-Aave listing **Usage patterns:** - $13B in stablecoins borrowed against $20B in deposits - Stablecoins represent 60% of all borrowing despite being only 1/3 of deposits - Primary use case: borrowing against crypto collateral The data demonstrates that **Aave has established itself as essential infrastructure** for stablecoin distribution and adoption in the crypto ecosystem.