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One of the recent large transactions on the Aave platform involved borrowing $1.5 million of USDT to purchase nearly 9,829 AAVE tokens. This trade was made a few hours ago, and this particular whale has been trading in AAVE and has bought as many as 75,493 tokens since the 13th of October, 2024.
A whale borrowed 1.5M $USDT from #Aave to buy 9,829 $AAVE 3 hours ago.
— Lookonchain (@lookonchain) November 15, 2024
This whale is long $AAVE and has bought 75,493 $AAVE($11.57M) since Oct 13, with an average buying price of $153.https://t.co/PZwShBYABX pic.twitter.com/UxMKIReTQC
The total value held for AAVE is found to be $11.57M, with the average price at which AAVE is purchased being $153. This aggressive strategy is due to a solid long position on AAVE, a decentralized finance (DeFi) protocol famous for lending and borrowing services.
Leveraged Purchase Through Aave V3
As mentioned by Lookonchain on the latest Tweet, the specific address leveraged Aave V3, which is a decentralized borrowing and lending protocol. The metrics show that the whale was extremely risky since he used a huge amount of borrowed USDT to buy multiple AAVEs. Analyzing this whale’s transaction history, we can observe several transactions where this wallet bought AAVE using CoW Swap, each worth tens of thousands of USDT.
A Detailed Breakdown of Transactions
The whale’s transaction history includes notable purchases:
- Purchased $35,075.46 USDT for 230.2519 AAVE
- 250.4386 AAVE was purchased for $38,263.82 USDT
- $65,970.81 in USDT used to purchase 431.3703 AAVE
- The overall sum of $116,441.37 USDT was used to purchase 761.3908 AAVE
Every buy further promotes the fact that the whale is trying to build up a large AAVE holding in a short period.
Aave V3 Lending and Health
The portfolio details of the whale were provided in a graph from Aave V3, showing that the account is healthy, with a health rate of 1.49. The whale presently has 75,849.601 AAVE worth $11.86M and has borrowed both USDT and GHO, the borrowed amount of which exceeds $5.8M. This strategy hinges on AAVE’s lending protocol to generate the highest level of potential yield and accommodate enough collateral.
Implications for the Market
This kind of massive acquisition could be pointing at such trends where the whales start exiting DeFi assets and taking leveraged positions to make more profits in the subsequent weeks.With the development of DeFi applications, everyone is watching this whale’s move to check whether this massive bet would turn out profitable or not.