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AAVE is back after a temporary setback and is preparing for the upcoming AIP

October 31, 2021 - Around 2 mins mins to read

Spot operations had some impact on DeFi protocols. However, what will happen to AAVE will also have some impact. November 1st will be an important day for this token in many ways.

AAVE is back after a temporary setback and is preparing

AAVE 4 Hour Price Chart | Source: Tradingview

AAVE fluctuates a lot

This week has been a roller coaster ride for the DeFi Protocol. On October 29, AIP (AAVE Improvement Proposal) proposed to disable xSUSHI and DPI token borrowing on AAVE V2 as a precautionary measure.

This came after members of the AAVE community raised concerns about a potential vulnerability related to the use of xSUSHI as a security. Although there was no specific damage if xSUSHI was hacked, the API is still up for voting.

The proposal was voted on on October 30th and only 1 objection was raised out of 58.8782 votes. Therefore, the AIP is expected to be implemented on November 1st.

1635686488 663 AAVE is back after a temporary setback and is preparing

Select AIP AAVE to disable xSUSHI and DPI | Source: AAVE

Coincidentally, AAVE’s variable APY rose to 29% on October 29th. It did so after the log got into a liquidity crisis due to large withdrawals mainly spearheaded by Justin Sun, as reported by Bitcoin Magazine. Some people even Call it’s mass withdrawal.

AAVE

AAVE variable APY (green) | Source: AAVE

In either case, this resulted in the Total Locked Value (TVL) of the DeFi protocol falling 26% from $ 19 billion to $ 14 billion in a 24-hour period. AAVE also had a very volatile day on October 27th. At its peak, the token rebounded 47% before falling back and closing at a constant -1.61%.

Investors took advantage of the upside and took profits as selling activity confirmed on all fronts. The number of trades and volume on October 27 was the highest ever at $ 1.7 billion.

AAVE

AAVE trading volume | Source: Intotheblock

Even Long Term Owners (LTH) are moving or even selling assets as over 95.66 million days have been consumed in a single day.

AAVE

Age of Consumption AAVE | Source: Santiment

Fortunately, all of the volatility subsided the next day as most of the AAVE sold was also bought back. However, since the new AIP is slated to be implemented on November 1st, we can only wait and see how it will affect the token and the network.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

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According to AMBCrypto

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AAVE

AIP

preparing

setback

temporary

upcoming

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.
Market

AAVE is back after a temporary setback and is preparing for the upcoming AIP

Spot operations had some impact on DeFi protocols. However, what will happen to AAVE will also have some impact. November 1st will be an important day for this token in many ways.

AAVE is back after a temporary setback and is preparing

AAVE 4 Hour Price Chart | Source: Tradingview

AAVE fluctuates a lot

This week has been a roller coaster ride for the DeFi Protocol. On October 29, AIP (AAVE Improvement Proposal) proposed to disable xSUSHI and DPI token borrowing on AAVE V2 as a precautionary measure.

This came after members of the AAVE community raised concerns about a potential vulnerability related to the use of xSUSHI as a security. Although there was no specific damage if xSUSHI was hacked, the API is still up for voting.

The proposal was voted on on October 30th and only 1 objection was raised out of 58.8782 votes. Therefore, the AIP is expected to be implemented on November 1st.

1635686488 663 AAVE is back after a temporary setback and is preparing

Select AIP AAVE to disable xSUSHI and DPI | Source: AAVE

Coincidentally, AAVE’s variable APY rose to 29% on October 29th. It did so after the log got into a liquidity crisis due to large withdrawals mainly spearheaded by Justin Sun, as reported by Bitcoin Magazine. Some people even Call it’s mass withdrawal.

AAVE

AAVE variable APY (green) | Source: AAVE

In either case, this resulted in the Total Locked Value (TVL) of the DeFi protocol falling 26% from $ 19 billion to $ 14 billion in a 24-hour period. AAVE also had a very volatile day on October 27th. At its peak, the token rebounded 47% before falling back and closing at a constant -1.61%.

Investors took advantage of the upside and took profits as selling activity confirmed on all fronts. The number of trades and volume on October 27 was the highest ever at $ 1.7 billion.

AAVE

AAVE trading volume | Source: Intotheblock

Even Long Term Owners (LTH) are moving or even selling assets as over 95.66 million days have been consumed in a single day.

AAVE

Age of Consumption AAVE | Source: Santiment

Fortunately, all of the volatility subsided the next day as most of the AAVE sold was also bought back. However, since the new AIP is slated to be implemented on November 1st, we can only wait and see how it will affect the token and the network.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

At home at home

According to AMBCrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

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