According to @cas_abbe, Justin Sun closed an ETH leverage loop of nearly 600M USD on Aave in July, causing ETH borrow rates to spike, the stETH to ETH price to slip by about 0.3 percent, and looping yields to collapse, signaling immediate stress for leverage-driven carry trades. source: @cas_abbe According to @cas_abbe, the move prompted many whales to exit similar positions, highlighting fragile liquidity and tighter borrowing conditions for ETH and stETH on Aave that reduce carry returns for traders. source: @cas_abbe

According to @milesdeutscher, Aave’s scale would place it among the top 40 U.S. banks if it were a bank, highlighting DeFi’s growing footprint; the claim was made in a public post on Aug 13, 2025; source: @milesdeutscher. For trading, focus on verifiable on-chain and protocol metrics: track Aave total value locked to gauge capital inflows and risk appetite across DeFi lending, which is publicly aggregated for Aave markets; source: DefiLlama. Monitor per-market utilization, variable borrow rates, and liquidation activity in the Aave app to assess funding conditions and potential volatility catalysts; source: Aave App. Review protocol revenue mechanics and reserve factors that direct a share of interest to the DAO treasury, which can affect long-term token value capture; source: Aave Docs. Watch governance proposals and risk parameter changes (collateral factors, interest rate curves) that can materially move borrowing costs and liquidity for AAVE-linked markets; source: Aave Governance. Note that AAVE functions as the governance and Safety Module token securing the protocol, which is central to risk and incentive alignment; source: Aave Docs.

According to IntoTheBlock, concentrated liquidity can significantly impact lending positions in crypto markets, as borrowers may be highly dependent on a single supplier to determine their borrow rates. This dependency increases rate volatility and risk, especially if the main liquidity provider adjusts their supply or exits the market. Traders should monitor supplier concentration ratios and liquidity shifts to better manage their lending positions and anticipate changes in borrow rates, as highlighted by IntoTheBlock on May 3, 2025 (source: IntoTheBlock Twitter).

According to IntoTheBlock, volume alerts can significantly enhance a trader's perspective by monitoring inflows and outflows within specific markets. These alerts are crucial for identifying shifts that could affect supply, borrow rates, and overall liquidity, providing traders with actionable insights to adjust their strategies accordingly.

According to IntoTheBlock, Euler's USDT Yield vault has experienced record high supply and borrow rates, leading to alerts in the Risk feed. These alerts can be viewed directly through Euler's Risk Radar dashboard for detailed historical analysis, providing traders with critical insights into rate fluctuations.

According to @intotheblock, the available liquidity for both Mendi and Zerolend is significantly larger than the positions held by whales. This implies that if a whale decides to exit, it will have a minimal effect on the borrow rates for leveraged restakers.