Institutional DeFi Strategy Analysis: How Abraxas Capital Leverages Aave V3 for $3.75B Cross-Protocol Operations

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A comprehensive 90-day analysis revealing Aave V3’s position as the institutional standard for large-scale DeFi borrowing, with exclusive insights into oracle lag arbitrage strategies

:bar_chart: Interactive Dashboard: Whale Analysis - Dune Analytics

:bank: Lending Protocols: “Digital Banks” for Institutional Capital

Abraxas Capital (0xed0c…4312) processed $3.75B in ETH transaction volume over the past 90 days, with more than half ($2.06B) flowing through major lending platforms:

  • :bar_chart: Aave: $1.28B (34.2% of total)
  • :bar_chart: Compound: $424M (11.3% of total)
  • :bar_chart: Spark: $349M (9.3% of total)

This analysis is for educational purposes only. Data sourced from on-chain transactions over the past 90 days.

Here’s how Abraxas Capital (0xed0c…4312) utilized each lending protocol:

  • :inbox_tray: Aave V3: Large-Scale Borrowing Hub: Deposited $4.61B in ETH/BTC derivatives (wstETH: $1.54B, cbBTC: $1.39B, WETH: $0.70B), borrowed $3.01B USDT
  • :inbox_tray: Compound V3: Liquidity Management Center: Deposited $551M with frequent supply/withdraw cycles (WETH: $179M, USDT: $344M), minimal borrowing ($15M USDT briefly)
  • :inbox_tray: Spark: DAI Ecosystem Gateway: Deposited $413M diversified assets (WETH: $195M, cbBTC: $127M), borrowed $133M in DAI/USDS - $88M DAI flowed to MakerDAO

Why Abraxas Capital (0xed0c…4312) Borrowed 3B USDT from Aave V3?

Abraxas Capital borrowed $3B USDT from Aave V3 and executed ultra-rapid fund deployment, with 82.83% of borrowed USDT transferred out within 5 minutes (7.25% within 1 minute). The majority flowed to major centralized exchanges: 26.01% to Binance, 20.10% to Coinbase, and 18.98% to Kraken.

:bar_chart: Abraxas Capital (0x…4312) USDT Cross-Exchange Arbitrage Case Study

April 25-26, 2025 Complete 22-Hour Cycle

Borrowed 183M USDT from AAVE, deployed to CEXs in batches (14:37-15:34):

  • Batch 1: Borrowed 60M → Coinbase (38M) + Kraken (22M)
  • Batch 2: Borrowed 48M → Kraken (25M) + Coinbase (23M)
  • Batch 3: Borrowed 40M → Internal Pool → Kraken (15M)
  • Batch 4: Borrowed 35M → Coinbase (35M)

CEXs fund returned back, AAVE repayment(22:05-12:41):

  • Coinbase: Returned 22.7M → Internal Pool
  • Bitfinex: Returned 4.47M → Repaid 4.47M
  • Kraken: Returned 208.75M → Repaid 208.75M
  • Total Repayment: 213.22M

Profit Model: Cross-exchange USDT price arbitrage

:bar_chart: Abraxas Capital (0xed0c…4312) USDT Complete Capital Flow

  • Capital Scale: Borrowing 3.023B (AAVE V3: 3.008B + Compound V3: 0.15B) + Withdrawal 778M (AAVE V3: 419M + Compound V3: 359M) = 3.8B USDT Total Deployment
  • Core Loop: DeFi Borrowing → CEX Rapid Transfer → Cross-exchange USDT price arbitrage → Capital Return → Repay & Repeat
  • CEX Arbitrage: Abraxas sent 3.404B to CEX (Binance: 1.241B + Coinbase: 959M + Kraken: 905M + Bitfinex: 299M) → CEX flowed 3.525B back (Kraken: 2.176B + Binance: 857M + Bitfinex: 328M + Coinbase: 95M + OKX: 68M)
  • Perfect Balance: Total Inflow 7.59B vs Total Outflow 7.59B, Net Flow = 0, Fully Balanced Capital

Why Abraxas Capital (0xed0c…4312) Withdrawal 927M USDS/USDC?

Abraxas Capital executed a sophisticated “withdraw-arbitrage-restake” strategy, withdrawing 927M from DeFi protocols (primarily 79% from Sky USDS) and deploying 86.6% to major CEXs (Binance 50.6%, Coinbase 36%) for arbitrage, before restaking funds back to DeFi protocols to maximize both trading profits and staking rewards.

:bar_chart: Abraxas Capital (0xed0c…4312) USDS/USDC Arbitrage Case Study :link:

February 26, 2025 Complete Cycle:

  • 01:18: Withdrew 30M USDS from Sky
  • 01:20: USDS/USDC 1:1 swap via Spark PSM
  • 01:22-01:23: Deployed 30M USDC to Binance
  • 07:22-08:30: Retrieved 30M from Binance, swapped to USDS and re-staked to Sky

Multi-Layer Profit: Sky supply yield + SKY staking rewards + Binance arbitrage operations

:bar_chart: Abraxas Capital (0xed0c…4312) USDC/USDS Complete Capital Flow :link:

  • Sky Staking as Core Capital Pool: Withdrawal 773.3M USDC/USDS (Sky: 731.9M + Compound V3: 27.8M + AAVE V3: 13.6M) + borrowing 153.6M USDC/USDS (AAVE V3: 108.6M + Spark: 45M) = 927M USDC/USDS Total Deployment
  • Core Strategy: Frequent Withdraw → USDC/USDS Swap → CEX Arbitrage → Reflow → Re-stake
  • CEX Arbitrage Flow: Abraxas sent 866.2M USDC/USDS to CEX (Binance: 506.5M + Coinbase: 359.8M) → CEX flowed 663.3M USDC/USDS back to Abraxas (Binance: 324.9M + Coinbase: 338.4M), Net CEX Outflow: -202.9M USDC/USDS
  • Spark Protocol 1:1 Exchange: Utilized perfect 1:1 USDC/USDS conversion mechanism, 1.235B USDC/USDS flow
  • Perfect Balance: Total Inflow 3.048B USDC/USDS vs Total Outflow 3.048B USDC/USDS, Net Flow = 0, Fully Balanced Capital
  • Multi-Layer Profit Sources: Sky staking rewards ($1.186M in SKY tokens), supply yield, and CEX arbitrage on USDC price spreads

:light_bulb: Key Takeaways for Aave Community

Aave V3’s Institutional Dominance:

  • :white_check_mark: 99.5% market share in institutional USDT borrowing ($3.008B of $3.023B total)
  • :white_check_mark: 70.7% market share in institutional USDC borrowing ($108.6M of $153.6M total)

This analysis demonstrates Aave V3’s position as the institutional standard for large-scale DeFi borrowing, with unmatched liquidity depth and reliability that enables sophisticated multi-billion dollar strategies.

What are your thoughts on these institutional strategies? Have you observed similar patterns in your analysis?

:bar_chart: Complete Analysis: https://dune.com/walledao/whale-analysis

:e_mail: Contact: https://x.com/WalleDAO

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Hey, great info, but still not sure this is relevant for the governance forums.

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