# \[TEMP CHECK\] State of Aave Health Report - August 2025 **URL:** \ **Category:** Risk\ **Created:** [August 28, 2025, 12:03pm UTC](https://governance.aave.com/t/temp-check-state-of-aave-health-report-august-2025/23031 "2025-08-28T12:03:32Z")\ **Posts on this page:** 5\ **Page:** 1
**Author:** ![Akikanga](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/akikanga/32/11902_2.png) [@Akikanga](https://governance.aave.com/u/Akikanga)\ **Post date:** [August 28, 2025, 12:03pm UTC](https://governance.aave.com/t/temp-check-state-of-aave-health-report-august-2025/23031/1 "2025-08-28T12:03:32Z")
# [TEMP CHECK] State of Aave Health — August 2025 Report **Author:** Abdulaziz Kikanga (Independent Web3 Storyteller) **Date:** 2025-08-28 * * * ### Summary This report provides a **monthly snapshot of Aave’s adoption, treasury strength, and risk resilience**. It draws from on-chain metrics and Dune dashboards to highlight: - Protocol health - Financial sustainability - Areas requiring governance attention * * * ### Motivation #### Context Aave’s multi-chain growth and treasury operations demand **transparent monitoring** to sustain confidence across depositors, borrowers, and governance participants. #### Why It Matters August showed **meaningful growth in activity and fee capture** , but also underscored the need for treasury stability and safety module funding. These insights can help shape upcoming governance discussions on **capital allocation** and **risk management**. * * * ## 📊 Key Metrics (August 2025) - **Treasury Buffer** : **$18,020,981,132** - **Total Active Users** : **19,082** - **Total Liquidated Value** : **$25** Full Dashboard on Dune : [State of Aave Health Report](https://dune.com/akikanga/state-of-aave-health-reports) ![Heading](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/a/ab1f47206430896a90d54196429074bc10e07938.png) ## 🟢 Section One: Adoption Metrics **Goal** : To Track how Aave is scaling in usage and attracting new participants. **Key Metrics** - Monthly token supply growth - Unique active users - Monthly transaction volume **August Insights** - Supplier deposits expanded **+41.6% MoM** , led by ETH and USDC inflows. ![Monthly TVL from Supply events](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/e715906a8459b96e16809bbf3c9e216d9b30b72f.png) - Borrow demand rose moderately, supported by **stablecoin activity**. ![Monthly active users (suppliers + borrowers)](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/f/f72b4d89515fe08a4627db87569fdc36be8c8d1b.png) - Total transaction volume surpassed **$4.5B** , highest in 6 months. ![Monthly transaction volume](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/b/b68665bf7567d586a1046b114b9eeab525c853e9.png) ## 💰 Section Two: Treasury Analysis **Goal** : Evaluate Aave’s financial position to cover **operations** and **safety outflows**. **Key Metrics** - Revenue events logged - Protocol fees collected - Reserve fund health **August Insights** - **248,626 revenue events** , showing strong fee generation. ![Revenue events](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/a/afab489d00dd0a079f4018f143f3be2003eb568c.png) - Fees climbed steadily, with ETH + USDC pairs driving inflows. ![Monthly protocol fees collected](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/0/06febc9d3ac083fabe4e80a0082809595fabc857.png) - Despite volatility, reserves cover **9+ months of operating runway**. ![Reserve Fund health](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/d/d1b9bb122e0d2a417d60af8a11bda99a21fd9325.png) ## 🛡 Section Three: Risk Resilience **Goal** : Assess how Aave manages **liquidations** and withstands stress events. **Key Metrics** - Borrow vs Supply ratios - Collateral usage patterns - Monthly liquidations - Price volatility impact **August Insights** - Liquidations were minimal ( **$25 total** ), indicating **stable borrower health**. ![Total Liquidated value](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/4/4fc9c1cdf75d6fddc102f17908d15f89a8652ca7.png) - Collateral usage remained concentrated in **ETH, stables, and wBTC**. ![Collateral Usage Patterns](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/2/2e5b4456903b93e4f363fc36a7cf447f97a62e59.png) - Volatility analysis showed **No systemic spillovers** to protocol solvency. ![Price volatility](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/0/07c783a052a9c25158f4a1c46a7677ec04920793.png) * * * #### Benefits for the DAO - Improves **decision quality** for governance participants. - Reduces reliance on ad hoc or external reports. - Establishes a **standardized, repeatable framework** for evaluating protocol health. * * * ### Disclaimer - The report is a community initiative. - No direct financial compensation or third-party involvement is included at this stage. - Metrics are sourced from public Dune dashboards; minor discrepancies may exist due to indexing delays. * * * ### Next Steps - Gather community feedback on the format and coverage. - If consensus is positive: 1. Maintain the report as a **monthly DAO artifact**. 2. Use insights to support **future ARFCs/AIPs** on parameter changes, treasury allocation, or risk management. * * * ### Copyright Copyright © 2025 Abdulaziz Kikanga. This proposal is released under **CC0 1.0 Universal (Public Domain Dedication)** to ensure open access, reuse, and modification. ---
**Author:** ![anon40760803](https://avatars.discourse-cdn.com/v4/letter/a/ed8c4c/32.png) [@anon40760803](https://governance.aave.com/u/anon40760803)\ **Post date:** [August 29, 2025, 8:10am UTC](https://governance.aave.com/t/temp-check-state-of-aave-health-report-august-2025/23031/2 "2025-08-29T08:10:04Z")
Interesting community initiative, but the numbers are way off. $18B TVL alongside just $25 in ‘total liquidated value’ doesn’t add up 😅 ---
**Author:** ![EzR3aL](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/ezr3al/32/10721_2.png) [@EzR3aL](https://governance.aave.com/u/EzR3aL)\ **Post date:** [August 29, 2025, 10:01am UTC](https://governance.aave.com/t/temp-check-state-of-aave-health-report-august-2025/23031/3 "2025-08-29T10:01:21Z")
Hello and thanks for your proposal, but as @anon40760803 already stated your numbers are off quite a bit. Plus the DAO already has analytical insights from Tokenlogic and also from ChaosLabs and Llamarisk regarding liquidation events, SVR, HF, etc. ---
**Author:** ![Akikanga](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/akikanga/32/11902_2.png) [@Akikanga](https://governance.aave.com/u/Akikanga)\ **Post date:** [August 29, 2025, 11:28am UTC](https://governance.aave.com/t/temp-check-state-of-aave-health-report-august-2025/23031/4 "2025-08-29T11:28:49Z")
Thank you so much @anon40760803 . Let me check my queries again.Appreciate your feedback ---
**Author:** ![Akikanga](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/akikanga/32/11902_2.png) [@Akikanga](https://governance.aave.com/u/Akikanga)\ **Post date:** [August 29, 2025, 11:30am UTC](https://governance.aave.com/t/temp-check-state-of-aave-health-report-august-2025/23031/5 "2025-08-29T11:30:17Z")
Thanks @EzR3aL .Interesting! Let me check it out.I appreciate alot for pointing me to the right direction.