Aave processes $4.65B in liquidations as SVR turns Bitcoin market stress into protocol yield

From May 2021 through early February 2026, Aave handled more than $4.65 billion in liquidations triggered by broad crypto sell-offs and Bitcoin price shocks. As liquidations spread from Ethereum to Polygon, Avalanche, Arbitrum, and Base, Aave's SVR framework monetized roughly $559.8 million in SVR liquidations, recapturing $13.17 million in value for the protocol and its partners. This structure allowed Aave to convert volatility and forced unwinds into sustainable, treasury-linked revenue rather than pure market losses.