Aave's 51% Lending Dominance Sparks Feedback Loop, $460M Backstop
January 28, 20265 min read
On Oct 10 Aave on Ethereum liquidated a record $192.86 million of debt, including $82.17 million in wrapped Bitcoin. The event showed the liquidation engine can move collateral without bad debt under stable conditions. Governance plans larger safety modules and asset‑scoped backstops to limit risk.