DeFi Saver Says Automation Helped 365 Aave Positions Avoid Liquidation

DeFi Saver said automated repayments helped 365 Aave positions avoid liquidation from Jan. 25 to Feb. 9, as the actions reduced debt during a period of market volatility.

The company counted 382 repayment actions on Aave V3 across Ethereum Mainnet, Base, Optimism and Arbitrum. It classified 365 as emergency interventions involving positions below a 150% safety ratio and said no position using its automation was liquidated during the period.

DeFi Saver estimated the positions held $446.3 million in collateral against $335 million in debt. It also estimated the interventions avoided about $8.38 million in liquidation penalties.

DeFi Saver also counted 382 wallet owners whose automated repayments were triggered over the same dates. It estimated users paid $701,000 in fees while using automation, versus an estimated $8.4 million in liquidation fees if the positions had been liquidated. That comparison uses a different measure from the case study’s estimate of avoided third-party penalties.

An Aave position can be liquidated if its health factor drops below 1. Liquidators can generally repay half the debt, though some circumstances permit full liquidation. They receive collateral that includes a liquidation bonus.

Automated repayment reduces debt and may involve selling collateral as prices fall. DeFi Saver’s estimates cover one period of volatility and do not establish how the system would perform for all Aave borrowers or in future market conditions.