How to offer a 600 million dollar whale whale output of the hidden Divay fragility star-news.press/wp

Usually, these decline operations are often a healthy reset, clean leverage and financing reset. In theory, it measures smart money.

However, in the case of ethereum, a 600 million dollars pulling eth The scenario turned. Instead of clean slowdown, structural risks appeared in the DEFI pile of Ethereum – difficult to ignore.

ETHEREUM pellet stalls with AAVE drain

AAVE (AAVE) is a major liquidity center in the Ethereum Defi scene. Of course, the entire system depends on a healthy liquidity store to maintain balanced borrowing/lending rates. But recently, this temporary store has been tested severely.

Justin Sun’s withdrawal of $ 600 million has created a great liquidity shock, depleting ETH reserves from AAVE.

Source: x

Functions? Changing borrowing rates from ETH increased to more than 10.06 %, making the leverage more expensive in all areas. But Loopers have achieved the biggest successes (traders who accumulate the return via STTH and ETH episode).

Here’s how it works: subscribe to ETH via Lido and become Steth in return, then fall into AAVE as a guarantee, borrowing eth, and repeat the loop to reinforce your APY. It is classic Defi return He plays.

Take, for example, someone chooses 100 ETH, gets 100 STTH, deposits them in AAVE, borrows 80 ETH, is also circumcised, and continues in the rings. When ETH borrowing rates are low, this return can double.

But once the borrowing costs jumped 10 %, the episode crashed. These loops were forced to relax, dump the market with STTH, and pay its price slightly less than ETHEREUM.

How to stop one exit from the eith momentum

The effect of the etheeruem beating severely. When the episodes began to throw Steth, the pressure was sold in the broader ETH market. Liquidity mitigates, kicking slip, and fluctuations.

Open attention started bleeding also. About $ 150 million of the long qualifiers was eliminated, as ETH already topped nearly $ 2,860. It was a classic local summit: eloquent, fabricated, and prepare for flow.

Source: TradingView (ETH/USDT)

Certainly, it was not a complete sale, but it certainly added friction to the upward trend and put the brakes on the ETAREUM gathering.

Main meals? Ethereum Defi stacked It is not decentralization as we think. The whale rotation resulted in the liquidity crisis, the leverage was blown up, and the system was detected. I ate the negative.