The Aave community passed the AIP 14 to authorize the settlement of CRV’s bad debts.
Aave’s on-chain transaction volume was largely loss-making at the time of writing.
On January 26, the developers of the Aave [AAVE] protocol had announced that they had acquired 2.7 million Curve [CRV] tokens of its platform.
Read Aave’s [AAVE] Price Forecast 2023-24
This change was a result of the community’s adoption of Aave Improvement Protocol (AIP) 144, which deployed a swap contract acquiring 2.7 million CRV at a maximum unit value of $1.15 per CRV and a USD coin [USDC] spending limit of just over $3 million.
Despite the announcement, AAVE failed to post substantial gains on the daily chart. In what areas did it falter?
Examine Aave’s transaction volume position
An examination of Aave’s transaction volume data revealed some information about the viability and health of the protocol. It had $161,000 in profit at the time of writing, according to the Daily On-Chain Transaction Volume in profit.
The statistics also showed that the protocol did not suffer from a lack of transaction volume. However, examining this statistic alone may not be enough to reveal the true state of the protocol.
According to the On-chain Transaction Volume in Loss, the protocol had about $295,000 in transaction losses at the time of writing. According to previous on-chain transaction data, the protocol was operating at a loss, but the current debt service should have no adverse effect on the system.
How much are 1,10,100 AAVEs worth today?
On a daily time frame
Aave has seen an upward trend since the beginning of 2023, just like the rest of the crypto market. But lately it had struggled to maintain its upward trajectory, and its advance had all but stalled.
Regardless of the current trend, however, the token maintained its position above both the long and short moving averages (blue and yellow lines), with the blue line serving as a support level.
This post Despite AAVE’s moves to pay off bad debts, these areas remain loss-making
was published first on https://ambcrypto.com/despite-aaves-moves-to-clear-bad-debt-these-areas-remain-at-a-loss/