Aave USDT borrowing endures stress test after HTX withdraws 400 million USD from liquidity pool

HTX’s recent withdrawal of 400 million USD from Aave squeezed out 93% of USDT liquidity, pushing borrowing rates to 28.6%. Aave’s resilience is commendable as it continues to attract new deposits while maintaining 1.2 billion USD in available USDT.

Post-withdrawal, borrowing rates spiked to 28.6%, while deposit yields surged to 24.65%. This volatility accentuates the unpredictable nature of DeFi liquidity, though Aave still offers substantial liquidity.

Despite a brief downturn, AAVE tokens have only dropped by 2.7% to 262.90 USD, showcasing Aave’s strong market position. Overall, Aave holds over 24 billion USD in total value locked, ensuring its role as a leading DeFi protocol.

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