The savage sell-off that took place in mid-May fueled volatility in markets and triggered liquidations among numerous decentralized finance protocols. Like an earthquake, the market fall exacerbated the biggest wave of liquidations in DeFi history. The market experienced a higher amount of liquidation on May 19 than in the past two years in the DeFi space.
As part of the Market Insights bi-weekly newsletter, Cointelegraph Consulting teamed up with Covalent to investigate the liquidations on Aave, Compound and Maker. While the three DeFi protocols account for nearly 50% of all DeFi total value locked, according to DappRadar, they saw liquidations hitting a record of over $1.17 billion worth of collateral recently.