Whale borrows 35,000 ETH on Aave and sends funds to Binance

On-chain analysts Lookonchain and Ember said the wallet used $132 million in stablecoins as collateral on Aave, moved borrowed ETH to Binance, and appeared to build a leveraged short position.

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Summary

A whale wallet identified as address 0x1be4 has borrowed 35,000 ETH in total on Aave and transferred the tokens to Binance, according to on-chain analysts Lookonchain and Ember. Lookonchain earlier reported that the wallet had borrowed about 18,000 ETH over two days and sent roughly $29.83 million worth to Binance. Ember later said the trader added another 7,000 ETH worth $11.83 million to the position, bringing total borrowed ETH to 35,000, valued at $58.51 million at a stated ETH price of $1,672. Ember said the position was backed by $132 million in stablecoins pledged on Aave, suggesting the wallet was using borrowed ETH to build a leveraged short, though the wallet’s exact intent was not independently confirmed.

Terms & Concepts
  • Aave: A decentralized crypto lending protocol where users can post collateral and borrow digital assets.
  • short position: A trade designed to profit if an asset's price falls, often by borrowing and selling the asset first.
  • stablecoins: Tokens designed to maintain a stable value, often by tracking fiat currencies.