$AAVE was still at 131.6 three days ago, and now it’s down to around 111.7—a drop of 15%. Yet open interest in futures is actually rising. Who’s stepping in to buy?
The Aave community has been debating one issue over the past two days: on 11/10, risk advisor LlamaRisk proposed freezing osETH on V3 Core. There’s about $279 million worth of osETH collateral there, backing roughly $257 million in WETH loans, with estimated leverage of around 14x. The top 10 positions account for 66% of the total. The proposal doesn’t seek to affect existing positions, but the market doesn’t like this kind of uncertainty.
On Binance futures:
・Open interest rose from 402,600 tokens at 4 a.m. today to 419,200 at 8 p.m. (+4%)
・Long positions held by regular accounts fell from 53.1% yesterday at 4 p.m. to 50.5%—retail traders are pulling out
・Large traders’ long-position ratio is still around 66%, and the funding rate has been positive for 8 consecutive periods
Retail traders are leaving, large traders are holding on, and the price is still falling. This is exactly the kind of setup where a sharp drop can wipe out longs that can’t hold on. For now, I’m watching today’s low of 110.6. If it breaks, I’m staying out; I’ll reconsider if it gets back above 120.
#AAVE #DeFi #OpenInterest #多空比
For more resources, see the BIO on my profile
Not investment advice. Investing involves risk
The Aave community has been debating one issue over the past two days: on 11/10, risk advisor LlamaRisk proposed freezing osETH on V3 Core. There’s about $279 million worth of osETH collateral there, backing roughly $257 million in WETH loans, with estimated leverage of around 14x. The top 10 positions account for 66% of the total. The proposal doesn’t seek to affect existing positions, but the market doesn’t like this kind of uncertainty.
On Binance futures:
・Open interest rose from 402,600 tokens at 4 a.m. today to 419,200 at 8 p.m. (+4%)
・Long positions held by regular accounts fell from 53.1% yesterday at 4 p.m. to 50.5%—retail traders are pulling out
・Large traders’ long-position ratio is still around 66%, and the funding rate has been positive for 8 consecutive periods
Retail traders are leaving, large traders are holding on, and the price is still falling. This is exactly the kind of setup where a sharp drop can wipe out longs that can’t hold on. For now, I’m watching today’s low of 110.6. If it breaks, I’m staying out; I’ll reconsider if it gets back above 120.
#AAVE #DeFi #OpenInterest #多空比
For more resources, see the BIO on my profile
Not investment advice. Investing involves risk