Aave Restores WETH Collateral Rates to Pre-Attack Levels

Written by Ohris M. Greyoon, Blockchain & Crypto Expert

Source: Coinmarketcap

Updated: 6 days ago

AAVE+0.29%

DEFI-0.04%

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Collateral Rate Restoration: Aave has reinstated WETH collateral rates to original levels across six major blockchain networks, with Ethereum Core at 80.5% and Ethereum Prime at 84%, aiming to restore liquidity and enhance market confidence.
Attack Consequences: The April attack resulted in the illegal creation of approximately $292 million worth of rsETH tokens, with attackers extracting $230 million in ETH from Aave, prompting the protocol to take emergency measures by temporarily reducing WETH collateral rates to zero.
Liquidity Impact: The restoration of WETH collateral rates significantly boosts liquidity and leverage capabilities in DeFi markets, marking Aave's resilience in crisis management and confidence in market stability.
Asset Management Challenges: Despite the collateral rate restoration, Aave still faces unresolved issues regarding frozen assets and liabilities, with the remaining 5,200 invalid rsETH tokens to be managed by the industry consortium DeFi United, indicating ongoing concerns about systemic risks.

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Technical Analysis for AAVE

Technical Sentiment Analysis for Aave (AAVE). As of , Aave (AAVE) is exhibiting a Neutral technical sentiment. Our proprietary analysis, which aggregates 5 technical signals, shows that 2 indicators are flashing buy, while 3 are indicating sell.

Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for AAVE stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.

Support, Resistance & Moving Averages. From a structural perspective, AAVE is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.

Aave (AAVE) Support & Resistance Level

Name	S3	S2	S1	Pivot Points	R1	R2	R3
Classic	71.506	77.028	82.376	87.898	93.246	98.768	104.116
Fibonacci	77.028	81.18	83.746	87.898	92.05	94.616	98.768

About AAVE

Aave is a decentralized finance protocol that allows people to lend and borrow crypto.Lenders earn interest by depositing digital assets into specially created liquidity pools. Borrowers can then use their crypto as collateral to take out a flash loan using this liquidity.Aave (which means “ghost” in Finnish) was originally known as ETHLend when it launched in November 2017, but the rebranding to Aave happened in September 2018. (This helps explain why this token’s ticker is so different from its name!)AAVE provides holders with discounted fees on the platform, and it also serves as a governance token — giving owners a say in the future development of the protocol.

About the author

Ohris M. Greyoon

Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.

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