Aave: A look into how the lending protocol fared in last week
Members of the Aave [AAVE] community voted in support of a proposal to temporarily pause ETH borrowing on the platform. The vote that took place between 30 August and 2 September saw members in favor of the pause due to the Merge.
Blockchain analytics platform, Messari, found that despite the suspension, key ecosystem metrics registered growth on 5 and 11 September. These developments were highlighted in the recently published Aave Weekly Report.
Furthermore, despite the pause in ETH borrowing, Messari found that overall ETH utilization grew by 9.3% between 5 and 11 September. This was because users of the protocol sourced for ETH loans through other means.
These included Aave 3 and Aave 2, deployed on Polygon and Avalanche chains. In addition, the protocol’s ETH revenue was up 80% within the same period.
For key ecosystem metrics, Aave saw a 5.4% growth in liquidity on the platform. Between 5 and 11 September, liquidity on the lending protocol grew to $10.8 billion from $10.3 billion registered between 29 August and 4 September.
Additionally, the total revenue made between 5 and 11 September stood at $3.5 million. This represents a 28.1% rally in total revenue from the $2.7 million recorded as total revenue between 29 August and 4 September.
In the period under review, wrapped Ethereum (WETH) was the most utilized class of asset on the lending protocol. It led other assets with a utilization rate of 67.7%. This was a 16% jump in utilization rate from the 58.4% registered during the same period.
Of all assets listed on Aave, WETH generated the most revenue in the period under review. This was followed by USDC, which logged a total revenue of $722,000 between 5 and 11 September. With a 32.7% share, USDC holds the highest
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