When Bitcoin collateral is liquidated in DeFi lending, the protocol sells or transfers BTC-linked tokens like WBTC, tBTC, or sBTC to repay borrower debt. This process reduces both debt and collateral but may not fully cover the loan, potentially leaving bad debt if the collateral's sale value is insufficient. Liquidators receive BTC representations, not native Bitcoin, which require further steps to convert or withdraw. The final recovery depends on market conditions, protocol rules, and execution prices, meaning lenders might face shortfalls and borrowers may not get back native BTC immediately after liquidation.
Kalshi has introduced perpetual futures contracts for cryptocurrencies including BNB, Cardano (ADA), Aave (AAVE), Worldcoin (WLD), and Venice Token (VVV), broadening its regulated crypto derivatives offerings in the U.S. These contracts, which have n...
Aave V3 now holds 78.6% of the $872.7 million USDT0 deposits in DeFi, reflecting its dominant position in stablecoin liquidity. Across 29 protocols, Aave V3 controls about 62.8% of the combined USDT and USDT0 total value locked, roughly $3.83 billion...
In August, Ethereum's ecosystem accelerated with significant Layer-2 network upgrades, including GnosisDAO's move to a ZK-proven Layer-2 rollup and Arbitrum's ArbOS Elara update enhancing transaction fees and smart contract capacity. Institutional ad...
Ethereum's daily active addresses have declined by about 64% from January to July 2026, dropping from over 1.5 million to roughly 544,000. Despite this, DeFi protocols on Ethereum, especially lending platforms like Aave, are seeing significant growth...
Aave's active loans jumped from $11.1 billion to $12.5 billion in August, showing strong demand for DeFi borrowing and leverage. It controls about 42-48% of the top ten active loans, far outpacing competitors whose combined loans nearly match Aave's ...
