🧩 Aave Debt Concentrated in Few Large Positions
Ethereum recorded its biggest single-day move in two years on Aug. 20, an 18% swing, yet it did not trigger a liquidation cascade on Aave. Analysis shows roughly half of Aave's debt sits within just 9% of positions.
The concentration stems from a staking correlation trade, where large positions cluster around correlated staked-ETH assets. That packs much of the debt into a small set of positions, leaving them exposed to unwinding if a future move hits that cluster directly.
What to watch next: how these staking-correlated positions behave in future large ETH swings, and whether exposure to this small set of positions gets adjusted.
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1August 21, 2026 5
