CandleFocus

Aave Sees $200M Weekly Increase in cbBTC Inflows, But There’s a Catch

Author: Content Editor
The cryptocurrency lending protocol Aave has seen a surge in Coinbase Wrapped Bitcoin (cbBTC) flows onto its platform due to a new incentives program. However, this increase in cbBTC poses a risk to users, as they may be temporarily unable to repay their loans on Aave. Aave launched the Merit incentive program earlier this year to reward users participating in platform activities, and recently implemented it for cbBTC. Since the launch of the cbBTC Merit program, the amount of wrapped tokens on Aave has increased significantly, reaching 2,700 BTC worth about $200 million. However, this growth puts users at risk if there is a sudden exit of a USDC supply whale from the market, as users may be unable to unwind their trades and repay their loans.

Related News