Large Withdrawals From Aave at Midnight Caused Borrowing Rates to Triple
(3 hours ago) · 1 source · Summarized by CryptoBipto
An unidentified large depositor has been repeatedly withdrawing approximately $290 million in USDC from the Aave lending protocol around midnight, temporarily draining available liquidity. The withdrawals caused borrowing rates on the platform to spike sharply before the funds were returned, leaving lenders with limited spare capital during those periods.
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Imagine a community pool of money where people deposit savings to earn interest, and others can borrow from it.
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SOURCES
- cryptoslate.com
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