Gas Prices and Deposit/Borrow Amounts

    Aave Deposits and Borrows Against Gas Prices

    1. Objective

    To find how Aave borrows and deposits are reacting to increasing gas prices. A short background on gas prices: Gas is the fee users pay for computation for interacting with the ethereum blockchain. Gas is not constant, it changes with network traffic, and also with the value of ETH, since gas is paid in ETH.

    2. Gas and Aave Use

    The graph below visualizes average Aave deposits and borrows over the past 90 days against gas prices denominated in Gwei. Gas price is in red, deposits are in black, and borrows are in green.

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    For deposit and borrow averages, we can see that there is no clear pattern over the last 90 days. The daily averages are usually below 1M USD but there are occasional spikes here and there. In a nutshell, Aave deposits and borrows seemed to have not changed regardless of increasing gas prices.