Analysis of ETH Loan Position
Recent on-chain data shows that Trend Research has collateralized 175,800 WETH on AAVE V3, valued at approximately $445 million, and borrowed around $274 million in USDT, maintaining a healthy loan-to-collateral ratio of 1.34.
Liquidation Risks in Extreme Conditions
Despite the stable position, a drastic drop in Ethereum’s price to $1,558 could trigger liquidation. This level represents a significant downside risk scenario far below current market conditions.
Risk Management in Market Downturns
In response to potential market volatility, Trend Research withdrew $109 million in USDT from Binance and deposited it into Aave to strengthen its position and reduce liquidation exposure.
- Collateral: 175,800 WETH (~$445M)
- Borrowed: $274M USDT
- Health Factor: 1.34
- Extreme Liquidation Price: $1,558