In February, the Ethereum lending market experienced its largest clearing event in 12 months, with a clearing amount of nearly $500 million

Odaily Planet Daily News: In February, the Ethereum lending market experienced the most severe liquidation event in 12 months, with nearly $500 million in collateral being liquidated. This is the second highest monthly clearing amount in DeFi history, second only to the clearing amount during the market crash in May 2021, when the clearing amount reached $670 billion. As expected, the surge in liquidation coincided with the overall market decline, leading to a significant decrease in the total market value of cryptocurrencies and triggering a large number of forced liquidation. Most of these settlements occurred on the two largest lending platforms, Aave and Compound, which handled the majority of the settlement volume in February. The clearing mechanism of the platform allows third-party liquidators to repay partially insolvent loans and obtain collateral from borrowers at a discounted price, typically between 5% and 15%, depending on the assets, thereby providing efficient adjustment incentives for the market.