Aave, a leading decentralized finance (DeFi) protocol, liquidated over $450 million in collateral over the past week, according to founder Stani's statement on the X platform. This liquidation represents approximately 0.9% of Aave's total deposits, which exceed $50 billion. Despite the significant liquidations, Aave continues to generate additional revenue and maintain resilience in the DeFi space. The protocol is preparing to release a new liquidation engine for its upcoming Aave V4, aimed at enhancing flexibility and performance. Aave's built-in mechanisms effectively manage bad debts that can arise during the lending process, ensuring the protocol's stability and efficiency.