The Aave protocol liquidated over $450 million in collateral in the past week.

PANews reported on February 6th that Aave founder Stani stated on the X platform that the Aave protocol and the entire DeFi space have experienced an extremely resilient week. In the past seven days, the protocol liquidated over $450 million worth of collateral across multiple networks. For a lending protocol with a scale exceeding $50 billion, this represents approximately 0.9% of total deposits at the time. Simultaneously, Aave continues to accumulate additional revenue. Bad debts can occur during the lending process, and Aave has built-in mechanisms to handle such situations. Furthermore, a new liquidation engine will be released for Aave V4, bringing greater flexibility and performance to the protocol.