\t\t\t\t\t\t\t\t![](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/03\/IMG-9126-scaled-e1677641698928-80x80.jpg\")
<\/p>\n
Journalist<\/p>\n<\/p><\/div>\n
\t\t\t\t\t\t\t\tPosted: September 1, 2023 A whopping $100 million\u2014 that was the value of loans issued on <\/span>Aave [AAVE]<\/span><\/a> on Monday 28 August. The landmark, a record high, was reported by Lucas Outumoro,\u00a0 IntoTheBlock\u2019s Head of Research.<\/span><\/p>\n Realistic or not, here\u2019s <\/span>AAVE\u2019s market cap in ETH terms<\/span><\/a><\/p>\n As a decentralized non-custodial liquidity protocol, Aave allows users to participate as suppliers, lenders, or borrowers. Suppliers on Aave v3 can provide liquidity to the market, and earn interest on the assets provided.<\/p>\n Borrowers, on the other hand, are able to borrow assets like <\/span>Ethereum [ETH]<\/span><\/a> using overcollateralized means. The recent surge in activity has sparked considerable interest and speculation about the factors behind this sudden growth.\u00a0<\/span><\/p>\n According to Outumoro, the remarkable turn of events could be linked to the introduction of sDAI and ETH borrow costs. In turn, it increased demand for the loans.<\/span><\/p>\n The daily amount of loans issued in Aave v3 on Ethereum hit a record high of $100M+ on Monday <\/p>\n The introduction of sDAI as collateral and improvement of $ETH<\/a> borrow costs appear to be driving the increase in demand pic.twitter.com\/F8Eh6b3YXe<\/a><\/p>\n \u2014 Lucas (@LucasOutumuro) August 31, 2023<\/a><\/p>\n<\/blockquote>\n For context, sDAI allows DAI depositors to earn interest on any protocol while maintaining liquidity. The sDAI idea is similar to the way users earn with Liquid Staking Tokens (LSTs).<\/span><\/p>\n Furthermore, Aave\u2019s V3 lending platform\u2019s ability to smash the record for previous loans on the Ethereum network has now placed it in the top spot as the go-to market for ETH borrowed.<\/span><\/p>\n According to<\/span> data from <\/span>TheBlock<\/span><\/a>, Aave beat other protocols including <\/span>Compound [COMP]<\/span><\/a>, Iron Bank, and dForce to take the top spot. Besides, being the number one lending platform was not just limited to DAI.\u00a0<\/span><\/p>\n But Aave also topped other projects when it comes to involving other stablecoins like <\/span>Circle [USDC]<\/span><\/a> and <\/span>Tether [USDT]<\/span><\/a>. As a result of the increase, Aave also became the largest holder of sDAI. As of this writing, it boasts owning 5.38% of the entire supply.<\/span><\/p>\n Source: The Block<\/p>\n<\/div>\n Just a day before, the protocol was second in this regard. However, the activation of its decentralized stablecoin GHO ensured that it reached the milestone in little time.<\/span><\/p>\n 22 hours later.. @AaveAave<\/a> is the largest holder of $sdai<\/a> with 5.38% (40.5m) of the supply, while spark is second with 4.63% (35m) \ud83e\udd73 <\/p>\n Well done for the quick integration! @lemiscate<\/a> & team. https:\/\/t.co\/tWRwXWXkiH<\/a> https:\/\/t.co\/EgqcuNyAX5<\/a><\/p>\n \u2014 StablesCap (@StablesCap) August 31, 2023<\/a><\/p>\n<\/blockquote>\n However, Aave\u2019s remarkable performance in lending failed to positively impact its Total Value Locked (TVL). At press time, <\/span>Aave\u2019s TVL<\/span><\/a> was $4.52 billion\u2014a 2.81% decrease in the last 24 hours.<\/span><\/p>\n
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span><\/p>\n<\/p><\/div>\n\n
\n
\nsDAI and GHO change the game for Aave<\/b><\/h4>\n
\n
![\"Aave](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/Screenshot-2023-09-01-at-07.42.00.png\")
<\/a><\/p>\n\n
Not the required catalyst for a TVL boost<\/b><\/h4>\n
\n
![\"Aave](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/09\/Screenshot-2023-09-01-at-07.55.54.png\")