Industry insiders: Key DeFi protocols successfully withstood pressure during the tariff crisis and performed better than TradFi during the crisis

CoinRank News: Driven by Trumps tariffs on major U.S. trading partners, the market sold off sharply, causing billions of dollars in total market value to evaporate from the crypto industry. However, some DeFi founders see this as a bullish signal. Several developers said that despite ETH falling at least 35% and SOL falling about 25%, several key protocols withstood the stress test. Aaves goal is to stay healthy and minimize pain, said Marc Zeller, founder of Aaves contribution team Aave Chan Initiative (ACI) in a private message. In addition, Evan Van Ness, a long-time Ethereum commentator, said: Except for some isolated incidents of front-end downtime, its good to see that Sky is running well. In times of crisis, DeFi performs better than TradFi. According to data source Block Analitica, Sky has 19 new liquidation positions involving assets worth more than $8 million. From what I can tell, everything is going well, said Rune Christensen, founder of MakerDAO. To put the situation into perspective, risk service provider Chaos Labs said that Aave processed about $210 million in liquidations during the market downturn. In comparison, according to a previously published report, about $263 million was liquidated on Aave V2 between December 2020 and December 2022. Rapid market volatility led to a large number of liquidation events in the lending and perpetual contract markets, marking the largest day of liquidations ever, Chaos said in a status report, noting that more than 80% of liquidations occurred on the Aave Ethereum mainnet. Most importantly, compared to other venues, Aave does not force all user positions to close when liquidations occur. Only a maximum of half are available for liquidation, mitigating user losses, said Zeller. According to Block Analytica data, the amounts of these liquidated positions ranged from tens of thousands of dollars to less than $100. Zeller believes that the performance of the protocol, as well as many other decentralized protocols, shows that the effort to design secure platforms that simply work normally is worth it. He noted that the Aave team is working to integrate Chainlinks smart value recovery solution to make liquidations more efficient and more profitable for the protocol. (The Block)