The native token of Aave (AAVE), the largest decentralized crypto lending protocol, was caught in the middle of Friday's crypto flash crash while the protocol proved resilient in a historic liquidation cascade.
The token, trading at around $270 earlier in Friday, nosedived as much as 64% later in the session to touch $100, the lowest level in 14 months. It then staged a rapid rebound to near $240, still down 10% over the past 24 hours.
Stani Kulechov, founder of Aave, described Friday's event as the "largest stress test" ever for the protocol and its $75 billion lending infrastructure.
The platform enables investors to lend and borrow digital assets without conventional intermediaries, using innovative mechanisms such as flash loans. Despite the extreme volatility, Aave's performance un