Massive USDT Withdrawal From Aave Sparks Rate Hike, Raising DeFi Concerns

A significant withdrawal of $114.9 million USDT from Aave by a large whale has triggered an increase in interest rates and sparked concerns about the stability of decentralized finance (DeFi) systems. The withdrawal, which reached a 92.83% utilization rate, according to on-chain data, pushed Aave past its optimal threshold. While no connections to insiders or influencers are visible on the blockchain, this action has highlighted potential vulnerabilities in DeFi lending protocols. )