Whales Supply Concentration

Overview

This indicator shows the historical concentration of supply in the Aave protocol. This is done by separating depositors in the following two categories:

• Whales: addresses with >1% share of deposits

• Investors: addresses with <1% share of deposits

How can I use it?

Lending protocols depositors have the risk of having their liquidity trapped on the protocol if all deposits are being lent out at that time.

This information helps users in analyzing the liquidity risk of not being able to withdraw if a whale withdraws their liquidity first.

It’s also important to clarify that most protocols have mechanisms in place to correct these trends with time. In the case utilization rates are driven too high, rates increase act as an incentive for either for more assets being deposited or debt repaid.