• $350 million worth of DeFi positions were liquidated during the market sell-off.

• Aave secured $6 million in revenue from processing on-chain liquidations.

• One $7.4 million WETH position was liquidated, providing Aave with $802,000 in revenue.

The founder of decentralized finance (DeFi) protocol Aave said the platform generated $6 million of revenue during Monday's crypto market sell-off.

The plunge trickled down to DeFi after last week's Bank of Japan decision to hike interest rates and Friday's U.S. jobs report. Ether {{ETH}} is down by more than 20% over the past 24 hours whilst aave {{AAVE}} has lost 23.7% of its market cap.

The sell-off led to more than $1 billion being liquidated across crypto derivatives markets, with a further $350 million liquidated on DeFi protocols, according to Parsec Finance.

"Aave Protocol withstood market stress across 14 active markets on various L1s and L2s, securing $21B worth of value," Aave's Stani Kulechov wrote on X. "Aave Treasury was rewarded with $6M in revenue overnight from decentralized liquidations for keeping the markets safe."

The decline in crypto prices led to several liquidations on Aave, including a $7.4 million wrapped ether (WETH) position, which yielded revenue of $802,000 for the company, according to on-chain data.

The total value locked (TVL) on DeFi protocols is now at $71 billion having dropped from $100 billion at the turn of the month, DefiLlama data shows.