An investigation into AAVE protocol

AAVE is a decentralized finance (DeFi) platform where users can borrow a range of cryptocurrencies, as well as lend assets in exchange for interest payments, all without needing a middleman.

Aave (AAVE) is the native cryptocurrency of this platform.

On this dashboard I wanna check daily AAVE supplied/withdrawn and staked/unstaked on this protocol.

Methodology:

• I used Flipside Crypto
• AAVE docs
• Ether-sacn

The first step we need to take for this exploration is to know the basis of AAVE-related transactions on ethereum.

By checking Flipsideflipside_prod_db.aave tables and Aave transactions, I found that 0x4da27a545c0c5b758a6ba100e3a049001de870f5 address is the smart contract Aave use to manage staking.

By tracking this address, I saw there are different kind of transactions like claiming rewards, **cool down, approve, stake, redeem, transfer etc and I only need ==Stake **and redeem transactions.

To reach this goal, I filtered the results obtained from this address by limiting to_address and from_address to mint address (because we know by staking or redeeming, we mint or burn staking-tokens which calls stkAAVE in this case).

Ok.. lets get into it:

• Most AAVE has been deposited on May 6, 2021 with more than 1.6 million AAVEs (more than 747 million$)

• There are 3 significant increase in depositing AAVE since beginning of 2022.

• Most AAVE has withdrawn from protocol on May 5, 2021 (more than 1.6 million tokens/ 750 million$).

• This huge withdrawal was exactly before May 6 huge deposit and its probably a whale/ whales movement for their purposes.

• As we see in last charts, almost all of huge withdrawals are followed by huge deposits (on same day or the day after that) which probably means whale movements again.

• Most daily AAVE token staking is happened on Oct 21, 2020 (more than 733k tokens)
• Most daily AAVE token staking based on dollar value is on Feb 11, 2021 (more than 213 million$)

This difference is because of AAVE price increasing

Based on these charts:

On Oct 21, 2020 maximum positive stake/unstake difference happened.

On Feb 28, 2022 maximum negative stake/unstake difference happened.

• Most daily AAVE unstaked from this protocol, is for Feb 28, 2022.

• Most daily AAVE unstaked (based on dollar value) is on Feb 14, 2021 (more than100 million$).

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As I said before, most huge withdrawals are followed by huge deposits.