- One of the whale controls most of the USDT liquidity, which poses a regular risk to the AAVE protocol.
- 93 % of USDT liquidity is pulled with one wallet, which limits the exits of other whales.
- The imbalance in liquidity is required to improve the monitoring of Defi risks and simulate exit.
A new simulation that examines the behavior of the whale on AAVE has revealed a large concentration of USDT liquidity in the hands of one wallet. The analysis reveals that one portfolio, shortened by “0x1 … 12E”, maintains a dominant situation in the liquidity gathering in the protocol and is able to change the dynamics of liquidity in the ecosystem significantly if a large -scale outlet begins.
The “Pisces Exit Simulation” scheme shows a total of 29371352 USD, available through the main whale governor. Among them, the portfolio called “0x1 … 12E” carries the most fundamental share, much exceeding liquidity capabilities for the other higher higher portfolios combined. The ability of this portfolio to remove liquidity from the system exceeds the size of the next eleven governor in the simulation, which gives it a overwhelming exit crane.
Such a deviant distribution In liquidity, access to structural challenges. while Defi Platforms such as AAVE are designed to enable open and intense financing, and the appearance of one entity with this liquidity dominance turns into a danger to central similar weaknesses.
Other whales face liquidity restrictions
The “0x1 … 12E” portfolios are significantly less withdrawal capabilities. The second largest title, “0x1 … B71”, and the third, “0x5 … CB2”, carrying prominent but smaller shares. Moreover, titles such as “0x5 … 923”, “0x1 … 132” and “0x9 … 1D1” represented increasingly marginal sizes.
With this focus of liquidity in a few first -class wallets, smaller whales and ordinary participants may face serious obstacles when trying to go out, especially under the conditions of the stressful market. The simulation confirms that a handful of actors only bears the strength of meaningful liquidity, which may exacerbate the stress in the market if there is one or more at the same time.
93 % liquidity drained with one whale
In addition to concerns, Sentora mentioned that the upper wallet has already removed 93 % of the available USDT Liquidity from AAVE. This procedure effectively restricts the chances of going out for their other senior holders, and may imprison them in the protocol due to the use of excessive liquidity. This scenario represents concrete risks for market participants who depend on flexible access to money.
This maturity not only shows the whale lever, but also explains how sudden movements by a participant sharply affect the liquidity at the system level. With the use of the assembly already, even the moderate exit attempts by others may lead to liquidity gaps or delay withdrawal.
The simulation raises red flags about the distribution of liquidity and its effects on the DEFI risk management. As decentralized ecosystems ripen, the ability to monitor and simulate whale behavior is increasingly vital. Data tools depicting the exit of liquidity provides transparency and support for enlightened decisions for participants who move in large -sized complex protocols.
