Large Loan Backed by 2.3% of AAVE's Total Supply Begins Liquidation Amid Price Plunge

According to on-chain data, a large loan backed by collateral representing about 2.3% of AAVE's total supply underwent a phased liquidation process on the 6th, triggered by a sharp market downturn. Approximately $2 million worth of AAVE collateral was seized in four liquidation transactions and was used to repay an almost equal amount of debt denominated in stablecoins. Before the start of the liquidation, this loan was excessively collateralized with AAVE tokens worth about $28.4 million, deposited in the decentralized lending protocol Aave. When AAVE's price dropped to around $104, three liquidations were triggered, and a further $1.38 million was seized when the price fell to $103.