AAVE Investor Faces Liquidation Risk Amid Price Drop

According to Odaily, a major investor using leverage to trade AAVE is facing the risk of liquidation. If the price of AAVE falls by another $7 to reach $123, the investor's position of 102,000 AAVE tokens, valued at $13.08 million, will be liquidated. Last year, between October and December, the investor borrowed 9.56 million GHO through a cycle lending strategy from Aave to purchase AAVE at an average cost of $166 per token. At its peak, the investment yielded a profit of $21.33 million, but it has now resulted in a loss of $3.58 million, with no sales made to mitigate the loss.