The USDT credit market of Aave experienced a sudden peak in interest rates, powered by activity of a small group of closely linked portfolios, which expressed concern about the liquidity concentration and the vulnerability of decentralized financial (Defi) systems.
USDT -Leen interest on an aave
On July 16 and 17, the USDT offer -Aave from Aave from Typical Single Neighter Figures rose to almost double digits, with borrowing rates short with 11%, a level that is last seen since January 2025.
Aave’s interest rates automatically adapt based on the use of a credit pool: when large portfolios withdraws hundreds of millions of USDT, the use of the pole increased the use of more than 90%, which means that fewer tokens are available for new borrowers and the Push rates are greatly higher.
Although it is unclear who exactly caused the peak, some people suggest that it usually comes from a small number of addresses linked to HTX’s “recovery” portion and a secondary account, according to an analysis of Onchain data that is shared by an anonymous observer on the chain known as deso on X.
In the midst of the activity at the chain, the liquidity in Aave’s USDT pool fell, with some estimates that suggested that the available liquidity briefly fallen below $ 150 million on the peak of volatility.
Data from Parsec shows that the HTX portfolios have taken almost $ 900 million in USDT from the Aave pool during the same time frame.
Whales dominate Defi
For a feeling of how much influence HTX’s wallet has, it has moved more than $ 3.6 billion in the last 30 days by the USDT Pool. From the moment of the press it contains more than $ 1.7 billion in USDT on Aave – more than 32% of the total reserves of the Pole – making it the largest supplier of a few liquidity.
Fundstreams – Parsec
In a series of X-posts, DESO claimed that only a few HTX-linked addresses were responsible for the massive liquidity movement, which dramatically waved AAV’s USDT rates within a few hours.
Although these movements can be a reflection of the management of Savvy Treasury-as the earning of yields they also see how much defi-liquidity remains in the hands of a few large players, where DESO claims that HTX’s activities on the chain that corresponds to the Aave USDT is “exactly to see how centralized deficials is karted Defi
HTX did not respond immediately to the request of the challenge to comment.
At the beginning of July, Aave surpassed the total growth of Defi in the past three months, which won the market share as more capital flowed to large protocols.
By the end of the second quarter, the total value of Aave had climbed to more than $ 25.4 billion, an increase of 52% of $ 16.7 billion in April, according to Defillama data. In the same period, the total Defi TVL grew by 26%, from $ 92 billion to $ 116 billion.
