Ethereum Loan Liquidations Reach New High in Early April: Aave and Compound Experience Significant Liquidations

In April this year, the Ethereum lending market saw a wave of liquidations, surpassing any month since the turmoil in June 2022.

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Highest Liquidation Volume Since Terra Collapse!
Curve Founder Faces Another Liquidation Crisis
Wide-ranging Market Impact

Data from The Block shows that lending protocols Aave and Compound were at the epicenter of this wave, with nearly $80 million and $50 million in liquidations respectively. The total liquidation volume reached its highest level since the $40 billion collapse of the Terra ecosystem in June 2022.

The recent correction in the cryptocurrency market has put the health of borrowers on various chains at risk, with Curve founder Michael Egorov also on the list. On-chain analyst Yu Yan discovered that Egorov’s lending position, valued at over $90 million, was once again close to liquidation, with some positions having health ratios as low as 1.1.

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OTC Fundraising and Repayment Again? Curve Founder CRV Faces Liquidation Crisis, Health Ratio Drops to 1.1
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The impact of this wave of liquidations extends beyond just lenders and affects many traders as well. CoinGlass data shows that cryptocurrency liquidations have reached nearly $1.7 billion in just the past three days, mainly affecting optimistic or bullish traders.

Aave
Compound
Ethereum
Lending

Related Reading:
Compound Adds ARB and Others as Collateral, But Arbitrum Version Still Limited in Scale
Lending Protocol Compound Launches Third Version Comet: Focuses on USDC Market, Expands to EVM-Compatible Chains