As markets melted on October 10, and many centralized exchanges stuttered, Aave didn’t flinch.

The protocol automatically liquidated over $200 million in collateral, preserving solvency without disruption, as Aave founder Stani Kulechov told a DAS London audience last week during a panel on DeFi rate markets.

“It was scary because of the size of the protocol today,” Kulechov said. “But things ended up well. DeFi really proved itself.”

That resilience followed from a Q3 marked by steady deposits, healthy lending demand, and normalized rates. But looking ahead, Kulechov sees an even bigger shift coming: global rate cuts could reignite yield flows — and widen the rate…

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