The savage sell-off that took place in mid-May fueled volatility in markets and triggered liquidations among numerous decentralized finance protocols. Like an earthquake, the market fall exacerbated the biggest wave of liquidations in DeFi history. The market experienced a higher amount of liquidation on May 19 than in the past two years in the DeFi space.
As part of the Market Insights bi-weekly newsletter, Cointelegraph Consulting teamed up with Covalent to investigate the liquidations on Aave, Compound and Maker. While the three DeFi protocols account for nearly 50% of all DeFi total value locked, according to DappRadar, they saw liquidations hitting a record of over $1.17 billion worth of collateral recently.
The largest single day of liquidations so far was May 19 as the three protocols together witnessed $377 million worth of collateral liquidated. Aave accounts for $170 million, while Compound lags not far behind with $147 million worth of liquidations, and Maker accounts for $60 million worth of liquidations.