On June 5, 2025, according to Ember, an on – chain analyst, an HTX – related address withdrew 570 million USDT from Aave within three hours, causing the available borrowable USDT liquidity on Aave to temporarily drop to 91.95 million US dollars.
As a result of the decline in liquidity, the interest rates for USDT on Aave spiked. The deposit rate rose from 3.8% to 29%, and the lending rate climbed from 4.4% to 33.6%. Such high interest rates are likely to attract arbitrage traders to deposit USDT or prompt borrowers to repay their loans. As the supply of USDT increases, the interest rates are expected to gradually return to normal levels.
The sharp drop in Aave’s USDT liquidity has also had an impact on the price of the Aave token, which has fallen by over 4% to $261.32. However, Aave remains the leading lending protocol in the DeFi sector, with over $40 billion in total value locked and around $16.5 billion in active lending.
It is worth noting that HTX has since redeposited 570 million USDT back into Aave. Consequently, the USDT deposit APY on Aave has rapidly dropped back to 8.07%, and HTX still has 1.2 billion USDT deposited in Aave.
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